Loan from parents....will this appear on my Credit File?

Chunky_Russell

Hello All,

To keep this brief....I'm looking at purchasing a property solely with a large loan from my parents. This loan will be made official & legally binding by listing the details (as a charge on the property) with the Land Registry.

I was just wondering if this charge would appear on my Credit File...in the same way that a loan from a bank or credit card would?

Hope someone can shed some light on this! Thanks in advance!

CR

Candyapple

Have you actually been accepted for a mortgage on this basis? I thought most mortgage companies would reject this given that you can't fund a deposit with a loan and if any money was given from parents/family that it would have to be declared as a gift and legally signed for as such.

I wouldn't have thought it would appear on your credit file because your parents don't hold a lending licence.

Chunky_Russell

Thanks for the reply Candyapple.

No mortgage is required / involved as 95% of the purchase price is being covered by the loan from my parents. It'll be fully repayable as a mortgage / loan would be....except it'll be paid back to my parents.

I've been told by my Solicitor that the charge on the property will fully protect the capital that they have loaned me.

Just trying to work out if it would appear on my Credit File or not? Can't find any specific information anywhere.

[Deleted User]

Only if your parents report loans they give out to the CRAs.

Do they run a credit lending business?

Chunky_Russell

Thanks zx81.

No this is purely a family thing....definitely not a credit lending business!

So unless my parents send this information off to Experian, Equifax etc....then it won't appear on my credit file?

[Deleted User]

Correct. And if they do, the good news is that you could report them for unauthorised lending, have the loan written off and have them slung in jail.

So you're a winner either way!

Chunky_Russell

Christ! I'm just happy with the offer of the loan....think sending them to jail is taking things a bit far! :rotfl:

PaulW922

You cannot list a private loan like this at a credit agency even if there is a loan agreement and a charge.