Declaring a gift for mortgage app

holly_hobby

I can to an extent .... but that doesn't change the issues surrounding it I'm afraid.

As we say, parents gifting deposits via retained capital isn't generally an issue, they getting a loan for it and/or they requiring it to be repaid very much is.

Hope this helps

Holly

shonzyd

leereni wrote: »

Thanks.

Based on our rent being about £700 we are keen to get on the ladder. Given that an extra 5 % could mean 6 months wait that's £4200 gone.

Can you see why we are looking at the mortgage now?

what is the benefit of your parents taking out a loan instead of you yourself? or are you doing it in the hope that you do not have to declare any repayments to the loan?

mrginge

holly_hobby wrote: »

As Mr Gringe .....etc

Mr Gringe ?????
:mad::mad::mad::mad::mad::mad:

mrginge

leereni wrote: »

Thanks.

Based on our rent being about £700 we are keen to get on the ladder. Given that an extra 5 % could mean 6 months wait that's £4200 gone.

Can you see why we are looking at the mortgage now?

Not really no.
You're just looking for a quick fix, without thinking about the consequences.

holly_hobby

mrginge wrote: »

Mr Gringe ?????
:mad::mad::mad::mad::mad::mad:

Oops ..... !! :rotfl:

leereni

Ok so how much generally is required to be declared as a gift from a parent?

shonzyd

leereni wrote: »

Ok so how much generally is required to be declared as a gift from a parent?

there is no monetary value. the advice given is that if you are having to pay it back you need to declare it as a loan. If there is an amount that does not need to be paid back declare it as a gift. Do not lie on your application.

And as someone stated, be prepare to evidence where the money came from in case they ask for it. If you parents cannot afford to gift you from their savings they really shouldn't be taking out a loan to cover this. Your creating an additional financial burden for both yourself and your parents.

As someone else said, it sounds like your looking for a quick fix without thinking things through. Neither you or your parents can afford the deposit out right. I would suggest you get saving!!!

leereni

Actually I can easily afford mortgage payments and a large loan. I'm not doing this through choice but purely based on the fact I am paying money renting every month and I am easily within affordability. I would never lie on a mortgage application. Those who do should be criminally prosecuted. But I get the feeling hardly any are. In terms of declaring it. I'd declare it as a gift as I would not need to repay it.

bigadaj

leereni wrote: »

Actually I can easily afford mortgage payments and a large loan. I'm not doing this through choice but purely based on the fact I am paying money renting every month and I am easily within affordability. I would never lie on a mortgage application. Those who do should be criminally prosecuted. But I get the feeling hardly any are. In terms of declaring it. I'd declare it as a gift as I would not need to repay it.

So you can afford it with mortgage rates at 8%, fully allowed for costs of running a house that are covered within your rent, living costs going forward such as your car lowing up etc?


So you've suggested that you wouldn't lie, but might now if there's littl chance of getting caught?

leereni

In answer to your first question, yes I can afford it.

Secondly, I didn't suggest I wouldn't lie, I stated I would not lie.