We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Re-mortgage
leedsone
Posts: 8 Forumite
I'm lending my son a 20% deposit to purchase a house but I will need the money back after 5 years at the very latest. If he decides to re-mortgage and stay in the property rather than sell will he be able to borrow extra from the (hopefully) increased equity to be able to repay his debt to me?
0
Comments
-
Possibly.
Subject to status, affordability and valuation.
Very few lenders will accept a loaned deposit, so be careful and speak to an independent broker to achieve correct lender selection.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 -
kingstreet wrote: »Possibly.
Subject to status, affordability and valuation.
Very few lenders will accept a loaned deposit, so be careful and speak to an independent broker to achieve correct lender selection.
Thanks for response, but loan would be an informal arrangement between my son and myself so is it necessary to inform the lender?0 -
He will be asked for source of deposit.
He can tell the truth and choose lenders who will accept this or you and he can lie and call it a gift for which you will be required to sign a legal disclaimer.
I would advise against the latter.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 -
just say its a gift. job done0
-
If you are sure you need the money back within 5 years then there is a risk that this wont happen if property prices fall, mortgage availability/rates change, son's personal circumstances etc change etc0
-
John_Jizzle wrote: »just say its a gift. job done
John clearly doesn't 'advise against the latter'.I 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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards