Can parent take out a loan, and gift me deposit for mortgage?

NH86

Hi all

As mentioned in the title really. If dad takes out a loan to pay for my mortgage deposit. Is that OK? He is gifting me the deposit so her understands that he can't ask for it back ..etc ..etc

He owns two houses and also works, so he is very happy to pay back the loan in 5 years (or whatever the term).

Any help would be greatly appreciated.

Thank you.

AnotherJoe

From what i read, many lenders would frown on this even if in theory there's no difference between getting a loan, or having a mortgage plus some cash and giving you the cash.
Go to a broker who may know who is likely to be OK with it.

Ftba.d

How would they know ? My lender only asked for my bank statement showing the money going into my account and asked my dad to sign a gifted deposit form to say that he willingly gave the money ...

Jox

Your dad may need to say where he got the money from.

Ftba.d

Mine didn't .

lee111s

Thing is though, even if someone did want to borrow say £10k to give as a gift to someone, is there anything wrong with that?

I understand that someone wanting to fund a deposit with a loan of their own is a no-no, but if someone wanted to borrow money can they not do with it what they choose?

AnotherJoe

lee111s wrote: »

Thing is though, even if someone did want to borrow say £10k to give as a gift to someone, is there anything wrong with that?

I understand that someone wanting to fund a deposit with a loan of their own is a no-no, but if someone wanted to borrow money can they not do with it what they choose?

Its the lenders money, the lenders rules. There are of course limits to how much a lender can police this kind of thing though. I'd have thought all but the most blatant examples will get through anyway.

davidmcn

The solicitor will probably only be expected to check that the gift is the parents' funds - I can't remember any lender asking for confirmation that the parents didn't borrow the money.

brit1234

It, stinks, more than it is fraud (fraud by misrepresentation). Don't do it, be honest and decent and save a deposit like everyone else.

lee111s

brit1234 wrote: »

It, stinks, more than it is fraud (fraud by misrepresentation). Don't do it, be honest and decent and save a deposit like everyone else.

How is it fraud?

Let's say I get a loan. Buy a car, then sell it a month later for the same as I bought it for. I then give the money to my relative. Would that be fraud?

SavingSteve

brit1234 wrote: »

It, stinks, more than it is fraud (fraud by misrepresentation). Don't do it, be honest and decent and save a deposit like everyone else.

Absolute nonsense, it is a gift, as long as it's declared as a gift there is no fraud.