Remortgage to pay back gift

middleclassbutpoor

silvercar wrote: »

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.

Spot on...

The purpose of the documents signed is to protect the lender against a future claim by the person gifting the money should anything happen.

There is absolutely no reason why you cannot repay the gift back at a later date, should the circumstances of the person who gifted/received the gift change.

I think with the rationale given for wanting to repay the gift, it wouldn't be seen as a lie by the lender. Whether the lender will offer money to finance this gift is a different question though.

You should seek the services of a broker as you will no doubt be needing to add someone to the mortgage at the same time too. Technically you are not doing a traditional remortgage, where you are just updating the deal you have with your current lender.

You are looking to refinance the existing debt, take a further advance and add an additional person to the mortgage by the sounds of it.

Brock_and_Roll

middleclassbutpoor wrote: »

Spot on...


I think with the rationale given for wanting to repay the gift, it wouldn't be seen as a lie by the lender. Whether the lender will offer money to finance this gift is a different question though.

Well it would be a problem if you phrased it like that as:

a) you cannot repay a gift - its a contradiction in terms
b) if implies that original "gift" was in fact a loan opening up potential mortgage fraud can of worms

However, if in answer to the question "Purpose of Funds?" is "To make a gift" then that would ok. Not all lenders would of course like that but at least keeping things straight.

middleclassbutpoor

I get what you are saying but the point i was making is that if the person in receipt of that gift wanted to return the gift then they are well within their rights to do so.

You can view the original gift with as much suspicion as you would like but the circumstances presented in my opinion would not be viewed in the sense that the original gift was a fraudulent one.

How it is documents/described on a mortgage application is one for the brokers Im afraid but at times on here some people get so 'high and mighty' about things when they only know a snippet of info, it is not always helpful.

All the OP needs to do is be given confidence in that they can release equity to make/return a gift but it may not be with their current lender..

ACG

middleclassbutpoor wrote: »

I think with the rationale given for wanting to repay the gift, it wouldn't be seen as a lie by the lender.

Fair point, but my post was more in relation to Sal' post.
If you are lying on an application about why you want the money this time (I am not suggesting Sal was saying that is what the OP should do) there is the potential that the original gift which is now being repaid may get viewed as a lie also.

Having read my post back, it does read like I am saying there was deceit involved. I did not mean it in that way, it was meant as more a case of IF deceit has been involved initially and then again this time, you can not really rely pleading ignorance as a defence.

MortgageMamma

Depending on your circumstances there are at least couple of lenders who would do this.

I'm not saying the other contributors to this thread are wrong, as you can see there are two ways of viewing this. I think the most important thing is to be honest. Your new partner moving in has changed the financial situation for the better, and your new partner would like to pay off your father for the original gift as it would make the ownership of the property more "equal" (as in on an even footing between you).

There is no way it can be proven either way if it was a gift or a loan and for a lender to do so would be futile. I think you have a good enough reason for your actions.

You may have to sign something to that effect but nothing ventured nothing gained.

MM

Thrugelmir

How much was the gift?