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Loaned Deposit from Parents to Help buy new house
Comments
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Can you or Cakeguts explain your reasoning, please?Correct, you have to fill in forms to explain where the £20,000 capital came from and provide documented proof. On explaining its a loan they'll want to see full written & signed terms on it (even if from close relatives). At which point the mortgage co will re-assess your mortgage offer a large amount downwards. Maybe go the parents as guarantors route to try to up the loan amount?
I've tried to clarify that only loans requiring regular repayments would see any reduction in mortgage borrowing power and in circumstances where an income cap is applied, there may be no reduction at all.
I'd like to understand where you're coming from.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 -
Why can't the parents just stick £20k in his account?(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
seven-day-weekend wrote: »Why can't the parents just stick £20k in his account?
Money laundering rules means solicitor's have to check where it came from. Not as simple as 'sticking' it in his account."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Money laundering rules means solicitor's have to check where it came from. Not as simple as 'sticking' it in his account.
We gave (not loaned) our son money for his house deposit. I'm sure all we had to do was make sure it was in his account by the time he had to pay the deposit.
He could have saved it and kept it under the bed, couldn't he? There is not always a paper trail.
(I do not want to encouarge the OP to break the law btw! Just trying to think of a simple way).(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
Money laundering rules means solicitor's have to check where it came from. Not as simple as 'sticking' it in his account.
So they say 'my parents gave it to me'. Parents could produce proof if necessary.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
If calling the money a gift your parents will have to write a letter saying the money is a gift and that they have no financial interest in the property (which they might not feel happy doing as they are expecting it back).
I think banks only ask for bank statements going so far back though. If you put it in a savings account and then add to the savings regularly for 3 months (maybe 6 to be on the safe side) then saying the money was saved might be believable? I don't know enough about these things to be sure though. We sent 3 months statements and haven't been asked about money from longer ago.Trying to lose weight (13.5lb to go)0
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