Deposit Loan from Parents EL HTB

g40lew

Hello,


We have decided we are going to look at new build properties under the EL HTB scheme but we needed to wait for 6 months or so to save for a 5% deposit, stamp duty, legal fees etc on a property at around 300k.


However we have fallen in love with a house that the sales person in the office has said is due to be released in around 2-3 weeks but not due for completion for around 5 months


My parents have offered to loan us the difference between what we have now and the amount we would require to exchange on the property after 28 days.


We will easily be able to pay this back plus save for the stamp duty and legal fees before completion but I wanted to know how mortgage companies would view the loan in regards to an offer?


Any advice if this would even be a possibility?

betmunch

Most would reject it, but I believe it can be considered with at least 1 lender, possibly 2.


You will need to declare it as the source of your deposit and include the monthly repayments in your commitments section.


As to whether an underwriter ultimately agrees it, that's another question.....

STG_2015

You could have your parents write a letter and provide evidence of where the money has come from to say its a gifted deposit, someone I know did that

betmunch

STG_2015 wrote: »

You could have your parents write a letter and provide evidence of where the money has come from to say its a gifted deposit, someone I know did that

Its not gifted though is it?


The OP clearly stated it was a loan


EDIT: Just seen your own EDIT! proper small print there!

amnblog

Do I say loan? I meant a gift.