Is this legal?

jimjames

jamesd wrote: »

I assume that at a minimum the mortgage lender will require you as trustee for the money to sign a declaration on behalf of the child that they renounce any entitlement to stay in the property if repossession proceedings against you become necessary. However, you should really ask for more on this in the mortgages section where the more real experts are.

Well pointed out. The unexpected consequences of taking a particular course of action.

From personal experience I can say that lenders are extremely thorough in checking the source of funds. Not just the account that they came from but how they were accumulated. So if it is in a child's account then they will spot it unless you move the money so far in advance that it would be pointless putting it in anyway.

chelseablue

When I purchased my flat I just ticked a box on a form to say the deposit came from savings and that was it.
The didn't ask to see anything

masonic

I'm amazed that someone can start a thread asking whether something is legal, get told in clear terms that they would be committing fraud and tax evasion and then turn the discussion towards how they think they won't get caught.

OP, if you are intending to go ahead and break the law despite what you've been told, maybe it would be a good idea to keep quiet about it?

SW17

chelseablue wrote: »

I will be using my savings to put down a deposit on a house.
So I think I will be using my money to benefit him.

So he would be a joint owner of the house would he? Seems you really want to convince yourself this is ok.

chelseablue

obviously if it's illegal I wouldn't do it. Don't really fancy being fined or in jail :-0

jamesd

It isn't illegal provided you do really follow through on the implications of giving away the money.

Instead of doing this have you considered saving and investing alternatives? Not hard to beat 3% these days.

chelseablue

Would love to but where? That isn't a current account

Archi_Bald

What's the problem with a current account?

chelseablue

I could use one, I only have 2 direct debits.
Most pay the high interest on a few thousand.
I'd need somewhere else to put the rest

Archi_Bald

You can put some £50K into high interest paying current accounts in your sole name, more if you can open joint accounts. More than plenty for £30K.

It is easy to set up some small additional DDs if you need any. All this is on the forum - look for TSB Plus, Club Lloyds, Nationwide FlexDirect, Santander 123, Halifax Reward, BOS Vantage, and Tesco Savings accounts for DDs. All on a plate right in front of you.