how much can a family lend me to buy a house

shamoo

Hi guys

i'm searching the net for the answer and hopefully you guys might know as well. I'm looking at buying a house, and as the title suggests a option is to borrow the full amount from a family member, however i do know there are limitation and i have no problem declaring and proving where the money came from to the tax man or who ever i would need to. So how much or could i borrow £240K to buy a house and then set up monthly payments to repay it back?

thanks

Guest101

You can borrow however much you want. It's a private transaction and tax man isn't involved. - as long as there's no mortgage

G_M

You want £240K?

They have a spare £240K?

No problem. Pay it back however you agree between you it is to be paid back. You might want to consider 'what if' situations, and discuss them with the family eg

what if

* you die?
* you lose your job and can't keep up the repayments as agreed?
* you get married, then divorced, and your ex claims half the poperty?
* the family member needs the money back (loses their own job? has an acident? etc
* etc

booksurr

you can borrow any amount "they" are prepared to lend you, if that is "only" £240k then that is how much you borrow

there are no tax implications at all for you

however, if you pay interest on the loan, ie repay more than you actually borrow then "they" will be liable for income tax on the interest element, just the same as they are liable for income tax on every other form of return they make from investment

penguingirl

Also if you are getting a mortgage for part of the purchase you would have to declare the loan to the mortgage provider who would unlikely not be happy about it as potentially the family member could have claim on your house. Also any loan repayments would effect the amount you can borrow.