Remortgage to pay back gift

Kitty1313

My father gifted me the deposit for my house. I now have a partner and would like to add him to the house and mortgage but also pay back my dad. This was only done as a gift as due to his age he could not be part of the mortgage. I thought I could remortgage and just transfer the money back once it’s drawn down but I’ve now been advised this isn’t possible. Has anyone remortgage to pay off a gift before? If so how did you do it?

sjbrun

A gift doesn’t need paying back.

Did you delcair it was a loan to the mortgage company or a gift?

Kitty1313

My dad signed a letter to say the money was gifted.

sjbrun

A gift doesn’t need paying back so you have nothing to worry about.

sal_III

By a definition and most likely as per the declaration your father signed you are not supposed to repay the gift.

But theoretically If you have enough equity you can potentially remortgage for more than your current mortgage balance and gift some money to your father.

Just don't say to the new mortgage lender that you are going to use the extra cash to repay the "gift"

Keep_pedalling

It would be foolish to do this if your fathers estate is likely to be in inheritance tax territory.

John_G_Jones

Kitty1313 wrote: »

My dad signed a letter to say the money was gifted.

As above, if it was a gift there’s no need to pay it back. Are you saying that it never really was a gift?

kingstreet

Kitty1313 wrote: »

I’ve now been advised this isn’t possible

By whom...?

ACG

sal_III wrote: »

Just don't say to the new mortgage lender that you are going to use the extra cash to repay the "gift"

What do they say? They will be asked.

Lying to get the original mortgage and then lying to get a remortgage would not go down well in any lenders books if found out - that is mortgage fraud twice. The potential outcome could be struggling to get a mortgage, insurance, even a credit card for years.

Honesty is the best policy, if it does not fit with the lender you are looking to use, find a lender it does fit with.

To the original poster, it can be done but some lenders ma not accept it as you have found. Just speak to some other lenders or a broker.

silvercar

Some people need to get off their high horse!

Perfectly reasonable for Dad to make a gift to their offspring when they were buying on their own. Now that a partner is sharing the house ownership, finances change all round and the offspring could decide that they want to make a gift to Dad now that they have someone to share their costs and home with.

A gift has no obligation to repay; doesn't mean that you can't decide to gift back at a later stage.

AnotherJoe

Add your partner to mortgage, sign an agreement with them that their ownership is x%, and partner gives your father the "gift" amount.