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Deposit conundrum

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Comments

  • How on earth would anybody find out the deposit wasn’t a gift?

    Sometimes in life you have to do what you need to for your family. If this lady can afford the re payments comfortably then nobody looses out, its a victimless “crime”. Some people must have lived sheltered lives.

    That said I find it a bit unfair that a family member would want to charge interest at that rate. Personally I would be weighing up which is the most expensive option in the long run.
  • nowhereboy wrote: »
    How on earth would anybody find out the deposit wasn’t a gift?

    Sometimes in life you have to do what you need to for your family. If this lady can afford the re payments comfortably then nobody looses out, its a victimless “crime”. Some people must have lived sheltered lives.

    That said I find it a bit unfair that a family member would want to charge interest at that rate. Personally I would be weighing up which is the most expensive option in the long run.

    It's hardly doing what you need to for the sake of your family.

    Putting food on the table is something of a necessity for the sake of your family.

    Commiting mortgage fraud to obtain a larger house beyond your means, is not something for the sake of the family.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    How is it fraud? In the end my mother could just decide to pay my cousin back. (In which case it would be a present). It all comes from overseas. Money would be deposited to a bank account in my name.

    The only "dodgy" bit is that my exH has to pretend he'll give me more money than he actually is.

    I have money locked in an overseas trust, which is worth £500k give or take but can't be take into account as it's overseas and a trust.

    I receive income from that trust but again can't be taken into account (£750) a month and the only reason why I have to move money around from.ovwrseas account to UK based account.

    What if it's my mom who gets the loan? For legality issues in the US I believe she's teh one who'd have to get the loan, not me.
    What sort of trust?

    Can't you get an income advance from the trust?
  • Thankfully I was privillaged enough to obtain a mortgage without bending any rules but my moral compass must be more flexable than some on here.

    Like it or not thousands of buyers do this, In fact I’d say most young first time buyers take family loans for deposits. Granted the OP has other options but many people don’t and they receive the same response.
  • It isn't a victimless crime

    If a broker is unknowingly brought into this and puts that it is a gift and the lender later finds out it isn't then they could be struck off the lenders panel for submitting a fraudulent mortgage application - it sounds extreme but lenders do recheck applications months after completion for audit and brokers do get struck off while the clients walk away.

    That broker would not be allowed to practice anymore and would lose their business.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • nowhereboy wrote: »
    Thankfully I was privillaged enough to obtain a mortgage without bending any rules but my moral compass must be more flexable than some on here.

    Like it or not thousands of buyers do this, In fact I’d say most young first time buyers take family loans for deposits. Granted the OP has other options but many people don’t and they receive the same response.

    or just use a lender who accepts a loan as source of deposit - just done this with one of my clients. 5% gift, 10% loan from a bank at 7.9% interest with monthly repayment all declared as a commitment and stated in the deposit box - mortgage offered today.

    No need to lie.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    Part of the Furniture 500 Posts
    I'd also add in I believe the lender would want some sort of evidence the cash was a 'gift' so would your cousin be willing to sign a document to confirm they are giving you the money with no strings attached??
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