Borrowing deposit money from family and friends for Mortgage

saverbuyer

marathonic wrote: »

The bottom line is that, if you borrow money and have to pay it back, the bank will view you no different to someone that takes a 10,000 cash advance on a credit card to use for their deposit....

EDIT: See Holly Hobbys response below. I thought about it a little longer and it would make sense that they'd view you as higher risk than someone borrowing on a credit card to source the deposit.

Did you not borrow from family to fund your deposit Marathonic? I thought I recalled you saying you borrowed from family to improve your LTV?

Soot2006

Basically - in order to use this money as a house deposit, your relatives will have to sign a document to state that they have gifted you the money unconditionally and they expect NOTHING back.

If you choose to repay them because you feel morally obliged and are happy to commit mortgage fraud, then cool.

If you choose to not repay them because you are an !!!!, then great because there is nothing they can do to get their money back. Hence they'd be a bit silly to sign the agreement unless they are happy to lose all the cash.

Over to you,.

Yorkie1

As others have said, if the money is to be repaid in the future, then it is a loan and you must tell the lender this. If you wrongly say it is a gift, then you are committing mortgage fraud.

Furthermore, if you tell the lender it is a gift, your family members will also have to sign documents which state the money is a gift. When they sign these false documents they too, are committing mortgage fraud.

Your choice.