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Paying back mortgage deposit to parents
Comments
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But he is charging you interest. If he gave you 34k and when you sell you pay him back what you agreed , his portion of the increase, and let's say that makes repayment 40k he has charged you 6k for the loan.0
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But he is charging you interest. If he gave you 34k and when you sell you pay him back what you agreed , his portion of the increase, and let's say that makes repayment 40k he has charged you 6k for the loan.
He was looking to boost his savings when he offered to put down the deposit. What I meant was that he wasn't charging a "set" level of interest, so that we all come out with the contribution level that we put in. Parents have 1/3, DH and I have 2/3.0 -
stir_crazy wrote: »He was looking to boost his savings when he offered to put down the deposit. What I meant was that he wasn't charging a "set" level of interest, so that we all come out with the contribution level that we put in. Parents have 1/3, DH and I have 2/3.
Round here, prices stayed level-ish for years and have suddenly jumped 10-20%. If I had that sort of deal I would want to pay back as soon as possible to avoid a sudden jump in house prices.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Then he should decare the increase to HMRC as interest received is taxable.0
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Then he should decare the increase to HMRC as interest received is taxable.
Thanks, he has an accountant now who keeps him on the straight and narrow, so I'll mention that he should probably speak to them to make sure he has declared everything properly.
Thanks for the advice all, everybody has given me food for thought. It seems the main views are to pay off as soon as possible, which was my first plan.0 -
stir_crazy wrote: »The loan was for 1/3 of the house value, approx £34,000. The house was to be done up to sell within 10 years and 1/3 of the selling price to be repaid to my dad.But he is charging you interest.
He's not charging interest - he's gambling.
If house prices fall, he'll get back less than he gave them.0
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