House deposit - loan from my parents

georginag123

Hi everyone,

We are potentially borrowing £10,000 from my parents for the deposit on our first house together. We find out tomorrow whether or not we can borrow at 90% or 85% LTV on a £200k property.

If we do borrow this money, is not a gift and will be repayable at a later date. My parents do not have any interest in the property. We want to do things by the book and so are wondering whether we just tell Halifax that part of our deposit is a temporary loan? The website talks about gifts but doesn't really say anything about other sources.

Surely thousands of people borrow money from family for their first house deposit.

Any ideas how we declare this?!

Thanks very much.

G

JustinR1979

Would your affordability easily cover paying this back? What payments would you make on it?

georginag123

JustinR1979 wrote: »

Would your affordability easily cover paying this back? What payments would you make on it?

We would pay it back next year when my partner receives his annual bonus. Halifax have not taken into account this income when looking at our affordability....

Thanks

dimbo61

It would have to be a " GIFT" from your parents and not a loan

georginag123

dimbo61 wrote: »

It would have to be a " GIFT" from your parents and not a loan

Hmmm, ok. My dad isn't happy to state in a letter that this sum is non repayable, though?

Mortgage_Mark_2

Some lenders will decline any application that involves a loan for a deposit; it's not a good sign for affordability if you can't even afford to provide your deposit.

JustinR1979

georginag123 wrote: »

Hmmm, ok. My dad isn't happy to state in a letter that this sum is non repayable, though?

Effectively borrowing for a deposit, this doesn't help.
There are enough hurdles for a FTB without adding 10k of debt as a deposit.

georginag123

Mortgage_Mark wrote: »

Some lenders will decline any application that involves a loan for a deposit; it's not a good sign for affordability if you can't even afford to provide your deposit.

OK. I will see what Halifax say. Hopefully they will lend to us at 90% so we won't need to borrow anything. Find out tomorrow.

We were told by an utterly useless broker that we could put 5% down on the HTB scheme. Luckily we could make up the other 5%, but a potential further 5% is impossible for us to find without help from parents.

Cypherite

I notice a lot on here that a lot of FTB are looking at what seem to be expensive houses. Is 200k the most affordable house in your area? Just curious.

Funny_old_game

Any clawback is an outright decline by them. If your solicitor says its ok they are wrong.

You'd better tell them as they will find out. Your not having the best of luck are you!!! Maybe your time isn't yet for a mortgage.

sinizterguy

Funny_old_game wrote: »

Any callback is an outright decline by them. If your solicitor says its ok they are wrong.

From Halifax or Help to Buy ?

It certainly is not from Halifax.

My mortgage had a lot of to-ing and fro-ing between my mortgage advisor and Halifax, with lots of extra documentation requested and sent. It was approved without any other hassle.