Remortgaging to Repay Gifted Deposit - Disputed

John-K_3

TJB24 wrote: »

Thanks to comments so far, they are effectively throwing me and my brother under a bus for a house they don't need. It's private to them but this seems to be motivated by their marital difficulties and my mother's mental health.
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They have a criminal for a child, they have likely realised this so want their money back. I cannot blame them.

GoingOn30

It sounds like you may have overstretched yourself but what's done is done.
I'd continue to pay your parents back over the rate you originally agreed, maybe a bit faster if you can.
It sounds like remortgaging to pay them back the whole amount is not an option to you anyway so you have no choice.
As others have mentioned, this was their risk to take, quite unfair to put you in this position.

ViolaLass

Yawn.

We get it, it was mortgage fraud.

What's that got to do with the OP's questions though?

sheepy21

The whole fraud thing aside, it's an entirely crappy thing to lend you money, encourage you to buy a bigger house then you were going to and on a whim demand it back. As you've said yourself, they're strangely trying to upsize and happy to throw yourself and brother into financial difficulty to do it, which as a parent myself I can't understand! They need to stop being selfish, children come first, they gave you the money when you were happy to make your own way, you can't be expected to financially ruin yourself for their flight of fancy.

getmore4less

you had an agreement but forgot to put the details in a form where they were on the same understanding.

You believe you had a 20y 1% loan with unlimited payment holidays and no right to call it in before they died.
(can you construct that from the emails)

They have decided something different.

shame your brother caved in because this probably would have been an easier discussion if you both took the same stance, now you are just the bad child.

Seems from what you have said you have no wiggle room.

You stick to the agreement you think you have.
Pay them back as much as you can when you can
Raise more funds(mortgage is probably a non starter without more lies)
Sell up.

What options do they have?

Could they cash in the assets that are creating the income and you increase your payment rate to supplement the income.


Your parents do realise they have to declare the 1% interest income they have been getting?

AnotherJoe

I would sell up, pay them back, buy a smaller place and be done with them.
Or you may choose to ignore them and continue with your exist8ng payments.

FWIW as you are paying them back every month, unless it's by cash, you have left a clear audit trail to prove that you and they comitted mortgage fraud, and no doubt it's also showing your parents committing tax fraud, pound to a penny they aren't declaring this income. .

Note that if you take the latter option, not giving them back their money, if they end up splitting up, I'd be confident that your "disgraceful behaviour" in not paying back the loan will be cited as the reason the break up occurred to all your relatives.

Re option 1, I suggest you tell them you are unable to remortgage and so have put the house on the market but this will take several months so they will have to wait. You could, if you wanted give them most of your savings (which can be replenished after you've sold) right now.. you could also reconsider your plan to get a degree, unless it's in a vocational are they are hugely overrated and you'd just be buying a 3 year vacation.

This all,comes down to you. Their behaviour is bad but end of the day you admit to taking outa loan and you have no doubt gained from house price rises in the meantime..

enthusiasticsaver

I think they are being unreasonable changing the agreement terms albeit a private agreement. You are right that it will not be easy or cheap to remortgage, given you have only just remortgaged and depending on salary, financial position and LTV it might not be approved. I think though in your position I would give them some of your savings and delay the extra study. Is it critical to your career and would your employer contribute?

Legally your parents don't have the power to force you to repay as your dad signed the waiver. He is the one who committed fraud not you although knowing the position I guess you were complicit.

AnotherJoe

Good point, the OP should deduct any expenses such as ERC and costs of selling and buying from the amount amd pass it over "in full and final settlement" and stay clear of their financial shenanigans in future.

cooltt

LOL, listen to all the puritans on here all living in little glass houses.

The parents took the risk end of and now they want to destroy what they helped create, wow what lovely parents.