Lending part of deposit from grandparents - advice please!

teddysmum · 6 April 2016 at 2:38PM

Something also needing consideration is the future care need of the grandparents. Unless they have ample funds to cover this,gifting the money could be construed as deprivation of assets,meaning any help would be based on their still having the money.

nicole19922 · 8 April 2016 at 6:14PM

Thanks all for your advice. I am simply asking a question as I am new to this.

I know deposit will be weak, the house we are looking at buying is 100,000. And we are happy tto put a 5% deposit down.

[Deleted User] · 8 April 2016 at 6:22PM

Regarding your small deposit, have you looked at help to buy?

https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-mortgage-guarantees

You will still need money for solicitors fees, mortgage fees, stamp duty, furniture and moving costs. Your grandparents could lend you money to help with those, but they couldn't lend you the money for the deposit.

I'd be careful of the assumption that you will be able to pay your grandparents back at the same amount per month as you are putting into savings now. Being a home-owner can be expensive, with responsibilities for insurance, maintainance, and flat service charges, that your landlord used to include in the rent. It isn't as simple as comparing the rent and the mortgage amount and saying 'we'll be better off'. Council tax and bills could be higher too.

zagubov · 8 April 2016 at 6:47PM

My colleague had financial help from parents towards a deposit and the parents needed to sign something saying it was a one- way gift and they weren't expecting to see the money back.