First time buyers, retention bonus, family loan advice

Tigglettchic

Hi, advice please.

I am just about to sign a retention scheme at work which ends after 3years with a hefty bonus. I want to use this as a deposit to buy.

My father has said he would loan me the amount of the bonus next year so I could buy before. I would then pay him back at the end of the 3 years.

How does this work with the gift/personal loan thing?? Is it possible??

Thanks

Hello123_2

Sounds like a gifted deposit.


We borrowed money for our deposit from parents many years ago and just had to provide a letter from them stating they would be gifting us X for the deposit. Not sure how it works nowadays but I am pretty sure that your bonus in 3 years has nil to do with it.


Just ask your lender or solicitor.

amnblog

It does not sound like a gifted deposit - it sounds like a loan.


A lender will accept a gifted deposit where the donor confirms in writing that the funds are a gift, not be repaid.

Tigglettchic

So what happens if it is a loan? Will they not accept us?

Thrugelmir

Tigglettchic wrote: »

So what happens if it is a loan? Will they not accept us?

No. Money needs to be gifted.