Mortgages How far back do they check?

milliemoo7

Any help gratefully received.
Me and my partner are currently renting our house but have the opportunity to buy it. Unfortunately due to rent and childcare costs etc we have had no spare cash to save for a deposit but our circumstances are now starting to change (daughter going into full time school etc) the trouble we have is our landlord has given us six months to buy or basically get out as he needs to sell. If we was to take a loan at present for the deposit and give it to my dad for safe keeping would they check this far back??? we really cant see anyway around this? we have been renting for this property for seven years.
Regards

chelseablue

If you took a loan out now, yes they would see that.


Im pretty sure loans etc stay on your credit file for 6 years

ACG

99% of lenders will not accept a loan for a deposit.

lee111s

There's a way around this.


My uncle took out a 15K loan and "gifted" my cousin the money for a deposit for his house.


Now that my cousin is settled in the house he is paying back this loan to his dad.




Is it possible your parents could do something similar for you?

milliemoo7

I think this is going to be my only option!
Im 33 and hate asking my dad for money! I think at my age I should not have to, I find it really embarrassing I was just trying to look at every way around it. Thanks for your help

dgtazzman

I wouldn't do what lee is suggesting. His uncle and cousin are committing fraud. Indeed, the chances of if being found out and having consequences are small, but they do exist. What happens if circumstances change? The uncle might suddenly need the money back, bad blood might come between them, etc. Things could get very messy...

Also, eventually the time will come to remortgage, how does the cousin intend to explain the periodic payments going to the uncle if the bank studies bank statements it is bound to ask for?

libf

dgtazzman wrote: »

I wouldn't do what lee is suggesting. His uncle and cousin are committing fraud. Indeed, the chances of if being found out and having consequences are small, but they do exist. What happens if circumstances change? The uncle might suddenly need the money back, bad blood might come between them, etc. Things could get very messy...

Also, eventually the time will come to remortgage, how does the cousin intend to explain the periodic payments going to the uncle if the bank studies bank statements it is bound to ask for?

Depends on what was declared with regards to the gift.

There is a difference between must not be repaid and no expectation that it will be repaid.

dgtazzman

If it was declared as having to be repaid, the banks most probably wouldn't have accepted it as part of the deposit.

libf

dgtazzman wrote: »

If it was declared as having to be repaid, the banks most probably wouldn't have accepted it as part of the deposit.

Yes, but HAVING to be repaid is different to someone CHOOSING to repay it.

superfast808

Santander, I believe, allow loans as a deposit source according to their criteria.

lee111s

There was no mortgage fraud at all. There was nothing discussed that the loan HAD to be repaid, my cousin felt it only right to repay his Dad, as any normal person would do.