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Is this a gifted deposit?
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libf
Posts: 1,008 Forumite
I will be raising the majority of the deposit for my purchase from the sale of my flat, however as I am buying a new build I will probably need to exchange on my new house before the sale completes, and then complete the purchase later. As such I will not have the 5% deposit for exchange and will need to borrow the money from my parents. I would then pay them back from the proceeds of my sale.
As it would be a bridging loan, just from my parents rather than a lender, I would not consider this to be a gifted deposit, but I would appreciate opinions on what a lender/solicitor would think. Thanks.
As it would be a bridging loan, just from my parents rather than a lender, I would not consider this to be a gifted deposit, but I would appreciate opinions on what a lender/solicitor would think. Thanks.
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You're borrowing money and paying it back so it sounds like a loan to me. Your parents could be asked to sign a document declaring that it is a gift.0
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A gift is a gift.
A loan is a loan
Lenders do not like loansI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Who has told you you will need 5% deposit?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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It's on the paperwork from Barratt. Although my mortgage broker did suggest that I might be able to do it on the reservation fee alone, so I'm going to speak to the salesperson when I'm at the development this weekend.0
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Your purchaser's deposit passes up the chain from solicitor to solicitor becoming a smaller percentage of the higher purchase prices as it does so.
You should not need a cash deposit. Speak to solicitor and site staff.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
A gifted loan is where the provider does not want/expect it to be re-paid. However, it doesn't mean it can't be re-paid! It happens often.0
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Correct answer provided by kingstreet0
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It doesn't sound like the purchase and sale are linked, so OP won't have the purchasers deposit to pass on?kingstreet wrote: »Your purchaser's deposit passes up the chain from solicitor to solicitor becoming a smaller percentage of the higher purchase prices as it does so.
You should not need a cash deposit. Speak to solicitor and site staff.Changing the world, one sarcastic comment at a time.0 -
kingstreet wrote: »Your purchaser's deposit passes up the chain from solicitor to solicitor becoming a smaller percentage of the higher purchase prices as it does so.
You should not need a cash deposit. Speak to solicitor and site staff.
Sounds as if the OP is not exchanging contracts on their existing property at the same time.0 -
It reads like the completion dates might be different, with the sale completing before the purchase.
As long as the exchange of contracts takes place at the same time, it shouldn't be an issue.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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