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First time buyers, retention bonus, family loan advice

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Tigglettchic
Tigglettchic Posts: 2 Newbie
in Mortgages & endowments
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

Comments

  • Hello123_2
    Hello123_2 Posts: 350 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    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
    amnblog Posts: 12,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Tigglettchic
    Tigglettchic Posts: 2 Newbie
    So what happens if it is a loan? Will they not accept us?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Tigglettchic wrote: »
    So what happens if it is a loan? Will they not accept us?

    No. Money needs to be gifted.
This discussion has been closed.
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