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Loan from business to deposit?
milobrulee
Posts: 55 Forumite
OK, I am 99% sure this is impossible but I'd be a fool not to investigate it.
My partner and I want to buy a house but have been struggling to raise the deposit even though we have good jobs. Having crunched some numbers we would be better off with a mortgage than renting (partially because we plan to relocate to buy).
So, my Dad has offered to help us. The catch:
1) His money is in his limited company. So it's not him himself who wants to help. It's more his business
2) He wants it to be a loan, not a gift. He said an interest rate equal to the mortgage interest would be what he's looking for.
This just isn't possible, is it, legally? I'm pretty sure you would need to state where you got the deposit from, and a loan wouldn't cut it. I've been trying to investigate if there are any springboard type mortgages but specifically for businesses? Or would the way around it simply be to take a legitimate dividend, including all the tax required on that, and in some other way use this for a deposit by way of something like a springboard.
Any ideas welcome. Like I said I'm not holding out hope but it'd be foolish to not research.
My partner and I want to buy a house but have been struggling to raise the deposit even though we have good jobs. Having crunched some numbers we would be better off with a mortgage than renting (partially because we plan to relocate to buy).
So, my Dad has offered to help us. The catch:
1) His money is in his limited company. So it's not him himself who wants to help. It's more his business
2) He wants it to be a loan, not a gift. He said an interest rate equal to the mortgage interest would be what he's looking for.
This just isn't possible, is it, legally? I'm pretty sure you would need to state where you got the deposit from, and a loan wouldn't cut it. I've been trying to investigate if there are any springboard type mortgages but specifically for businesses? Or would the way around it simply be to take a legitimate dividend, including all the tax required on that, and in some other way use this for a deposit by way of something like a springboard.
Any ideas welcome. Like I said I'm not holding out hope but it'd be foolish to not research.
0
Comments
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It's legally possible, but lenders really don't like deposits being borrowed.0
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Interesting that it's legally possible, as that's what I thought would be the actual hurdle.0
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