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

Ftba.d

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.

This post is almost not worthy of a response but here it goes . How ridiculous to try and school somebody on being 'decent' by saving a deposit themselves! So if people find themselves in a position where they are in receipt of inheritance from a loved one who has passed on, they shouldn't use it as a deposit in favour of doing the 'decent ' thing and saving it themselves ?

Fraud :wrongful or criminal deception intended to result in financial or personal gain... How is withholding where your parents obtained the money to gift you anywhere near fraud ? Of course , if asked, I'm sure the OP would make it clear where the money came from , however it makes no difference as long as the OP is not expected to pay his or her parents back . If the parents have secured a loan to gift it means they have the means to pay it off. All totally legit!

brit1234

Ftba.d wrote: »

This post is almost not worthy of a response but here it goes . How ridiculous to try and school somebody on being 'decent' by saving a deposit themselves! So if people find themselves in a position where they are in receipt of inheritance from a loved one who has passed on, they shouldn't use it as a deposit in favour of doing the 'decent ' thing and saving it themselves ?

Fraud :wrongful or criminal deception intended to result in financial or personal gain... How is withholding where your parents obtained the money to gift you anywhere near fraud ? Of course , if asked, I'm sure the OP would make it clear where the money came from , however it makes no difference as long as the OP is not expected to pay his or her parents back . If the parents have secured a loan to gift it means they have the means to pay it off. All totally legit!

Fraud by failing to disclose information (Section 3)

The defendant:

• failed to disclose information to another person
• when he was under a legal duty to disclose that information
• dishonestly intending, by that failure, to make a gain or cause a loss.

Like Section 2 (and Section 4) this offence is entirely offender focussed. It is complete as soon as the Defendant fails to disclose information provided he was under a legal duty to do so, and that it was done with the necessary dishonest intent. It differs from the deception offences in that it is immaterial whether or not any one is deceived or any property actually gained or lost.



Do the right thing. If you think your right, then declare the source of the deposit to the bank making the application.

SavingSteve

When did the OP say they would lie? You've made that up in your head. To busy being high and mighty to bother reading the post?

AnotherJoe

davidmcn wrote: »

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.

They may ask to see the parents bank statements and it may come to light that way. It is very subjective. A parent may pay off their mortgage from savings and then five years later get a loan for the deposit, or they may not pay off the mortgage five years later provide the deposit from savings. These are identical in practice, but some lenders do seem to view them differently.

Re the way the rest of this thread has gone, it's veered into a ridiculous level of accusations of fraud. The OP has stated they will declare it as gift, which it is. They will not be asked if its a loan to the parents but if it came to light that it was, it seems clear that some lenders would not like this. That doesn't make it fraud or illegal or any of the other guff that's arisen.

amnblog

Please skip posts #2 to #15 NH.


If Dad is happy with it, so is the Lender.

NH86

Thanks for all the replies guys, the good and the bad

Yes if I asked, we will of course tell it like it is.

I'll speak to a mortgage broker just in case as well.

Oakdene

My dad took out a small loan to help me buy a house.


My mortgage provider, Natwest, requested a letter signed by him stating that the deposit was a gift & that the money wouldn't become payable by me.

NH86

Oh that is lovely to hear Oakdene