Intra-family loan for house purchase

Colin61

Sea_Shell wrote: »

Even if it's 0%, the lender will still factor in that £X per month is also being paid back elsewhere, so it will effect affordability.

Thank you,



apologies that I wasn't clear about the repayment schedule... in addition to the loan being interest free, we would document that repayments are not anticipated until the end of the loan ( eg a balloon payment). I appreciate that the lender will still factor that in.



Thank you, Colin

Sea_Shell

How do you propose to monitor that money is being put aside for this "balloon" payment? What if the due date arrives and they haven't made provision for it? Will you be happy to write it (all) off? If so, why not just gift the money now?

Sea_Shell

It's a cracking deal for your son, as the inflationary effect over 20 years, will mean his £20k eventual repayment will feel like much less to him.

After 20 years, it should be more like £35k to give you the same buying power with that cash as you have now.