temp Borrow from parents

fatthinslim

Hello everyone, hope i have posted in the correct forum.

I need some advice please.

I have a house and currently purchasing another one first with no chain before selling old one, I need to borrow £25000 from my parents which they have agreed to put as a deposit for the new house as i do not have the money. I then sell the old one and the equity from it makes the new mortgage smaller and pays my parents the £25000 . I have searched the internet but can only find answers about gifts but not paying it back without getting caught for tax, does anyone know if this is possible to borrow for 6 months and pay back.

many thanks.

ReadingTim

Your parents will have to make some sort of declaration that the money is a gift rather than a loan, but there's nothing stopping you deciding to pay them back (or making a similar gift of £25,000 back to them) after you've got the new house.

However, as this reciprocal arrangement couldn't be enforced, there's nothing to stop you from doing a runner with their £25k and never repaying it, which might make them a little reluctant to lend in the first place...