Is this legal?

jimjames

chelseablue wrote: »

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

When I bought my house I wasn't asked to prove anything. When I bought again 3 years ago I wasn't either. Buying this year required a lot more proof and checks than I've ever had before.

Just because you weren't asked before doesn't mean it will always be the same. The new rules are much tighter on affordability as well as other aspects.

xylophone

I only have 2 direct debits

Once more into the breach....... DDs are easy to set up if you open 2 Tesco Savings accounts

See post 19

jimjames

xylophone wrote: »

Once more into the breach....... DDs are easy to set up if you open 2 Tesco Savings accounts

See post 19

And some accounts like tsb don't need any

jamesd

I don't know when the deposit will be needed but if you're willing to take some risk, have a look at Ablrate, where you can get 10% or so for a fixed term loan to a firm leasing a plane or similar, secured on that physical property. There is a market where you can sell early but it's a bit immature at the moment. You can get around 5% with mixed asset funds like Invesco perpetual Distribution, tax free if within an ISA, and you can transfer from your current cash ISA to a S&S ISA to get that. the capital value of this will vary up and down so it's not strictly guaranteed that you will not lose money.

Beyond those investment things there are things like teh Santander 123 account that has a $2 charge but pays you money based on direct debits from it, so you could make a profit, depending on DD purpose and value. It also pays 3% on up to £20,000 in the account. Other current accounts can pay a bit more than that, though on less.

You should be able to get an average after tax rate well above the no tax amount you'd get with your original thought.

You do need to bear in mind your timescale for needing the money and adjust what you're doing as it gets closer to the time when you need the money. That'll mean shifting into savings and current accounts closer to the intended end, to guarantee access and no potential drop in value.

kinger101

chelseablue wrote: »

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

Well, tax evasion is illegal, so don't do it.