When to start my search.

evansc1

Hiya

Going to (attempt to) buy this year with my wife as FTBs.
We are luckily getting some help from the bank of mum & dad. Will be as a loan, not gifted.

The money that they will be loaning us is currently stuck in several ISA accounts until August. We really want to be buying ASAP to allow us to stop wasting our money away in renting. When should we start looking if we want to find a property and move in as soon as?

Seen previously that banks require a letter from the 'helpers' to confirm the money that is being loaned, but at what point does that money have to be in our accounts? Is it only when we are completing? Or do we have to have it in our account to have the mortgage fully approved?

In essence, can we find a property and get the ball rolling with surveys/approvals etc before August and then only have the money transferred to our account in the middle of the process? Or do we have to have the money in the account ready for our first mortgage interview?

Thank you

kingstreet

The bulk of the lender market will not accept the deposit as you describe.

You will need broker help in shortlisting the lenders which will accept a loan from a relative.

You need to evidence your deposit at the point you apply for a mortgage.

evansc1

Thank you for the reply.

There will be no formal repayment schedule written up - just to be repaid before they retire. So presume the issue is more that there is a loan in place, no matter where it is from? Doesn't make a difference that i'd still have more than enough left over monthly to afford these payments?

When you say 'evidence the deposit', do you mean in our bank account or can it be the money in their accounts, with the letter confirming their help?

Thank you again!

kingstreet

They will be expected to confirm in writing they are gifting you the money by those lenders which won't accept it being loaned.

This will not be possible, so you will need to document it properly as a loan with a lender which accepts such arrangements.

The arrangements will determine the lender you use and the lender you use will determine the arrangements. For example, some lenders won't accept you making monthly repayments. They will only accept repayment from the future sale proceeds or remortgaging.

I'll ignore the "letter" things as it isn't going to apply.