FTB would need to borrow deposit

marksoton

Amara wrote: »

How bank/authority will be able to prove, it was technically fraud? Once payments stopped, no problem here. You can always tell bank : "My mum and dad went into hardship and I helped them".

Indeed.

But lenders aren't stupid. Besides which if you declare it as such they may class it as a dependent payment.

brit1234

SmlSave wrote: »

If you are happy giving her the money and trust her to pay it back then don't tell the mortgage people that the deposit is borrowed. Just say it's savings/inhertitance.

We borrowed money from dad and I pay him a monthly amount. The money got transferred to my account and then I forwarded it to my solicitor.

Bad advice. You shouldn't be promoting fraud and dishonesty on this public forum designed to help people.

Just because you got a way with criminality does give you the right to promote others in doing it on a website designed to help people.

100% mortgages were banned because they are high risk, what you are promoting is committing fraud to get round this.

SmlSave

Well excuse me!

I borrowed money to get below 85% equity as we were £5000 short and the interest drop was crazy.

Have remortgage twice and am now at 70% equity.

Keep_pedalling

Far better to gift the money, it might also help with inheritance tax planning if that is an issue.

Margarita

Thanks to everyone. I doubt whether inheritance tax will be a problem.
If I did gift her the money it would be more in hope than expectation that she paid me back!

clarky_cat

I borrowed from my mum to buy my first property. I didn't have any problems getting a mortgage, they were more interested in my monthly outgoings to ensure that I could afford it. That wasn't going to be a problem as the mortgage was £200 a month less than what I was paying to rent. .

Dird

marksoton wrote: »

Technically fraud.

And good luck trying to explain those payments when remortgaging.

He could just stop repayments 3 months before looking to remortgage & continue once approved.

gregsayer

gift the deposit, then keep anything between you and your daughter private!

Pixie5740

Margarita wrote: »

Thanks to everyone. I doubt whether inheritance tax will be a problem.
If I did gift her the money it would be more in hope than expectation that she paid me back!

Then it wouldn't be a gift. The mortgage lender could ask you to sign something declaring that it is a gift and not a loan.

I'm sure some posters have gotten away with committing mortgage fraud but personally it's not something I would risk. Especially not with the Mortgage Market Review legislation introduced last year where lenders are scrutinising would-be borrowers income and expenditure.