Is This a Terrible Idea? Bank of Dad

[Deleted User]

annetheman said:

Lover_of_Lycra said:

If you are in such a strong financial position why do you not saved your own deposit?  You're 30 years old so why are you bothering your father who in your own words "needs a break?"

Have you even been able to find a mortgage lender willing to give you a mortgage with just 70 years left on the lease?

I have ^ already said in my original post, the lender has specifically told me in person that if the current owner starts the process to add the 90 years on the lease and I can provide evidence of this and the fact that I am able to finish it, they will consider lending to me.

I haven't always been on this salary, I actually was on a generic graduate salary 35000 until December 2019 until I got a new job (see my previous posts).

That is not a lot in London AT ALL. I'm buying outside of London in a commuter town and I have found the perfect place that I absolutely love, is a really great investment and I really want - if I don't make an offer it is going to go and I don't think I will find anything I love as much.

In the devastating situation in which I lose this house, of course I will save the old fashioned way. My question isn't about whether it's a good idea for me to buy the house - it's about whether the way in which I plan to do it is feasible - thanks

You did not say that in your OP.  All you said was, "The lease is low, way low; I will ask the current owner to begin process of renewing for 90 years as a condition of sale."  At no point does your OP even mention speaking to a lender or mortgage broker.

As for seeing your previous posts, I'm not going to trawl through your posting history so all I have to go on is your statement that you are in a strong financial position and earn £55k a year yet have not saved a suitable deposit.

Your father has a CCJ which was down to you and now you want him to take out a loan for you and commit mortgage fraud by declaring the loan as a gift yet you also say he "needs a break."  So give the poor guy a break.  He's willing to simply gift you the money so keep things simple and just take the gift instead of involving him in your convoluted scheme.

annetheman

Lover_of_Lycra said:

annetheman said:

Lover_of_Lycra said:

If you are in such a strong financial position why do you not saved your own deposit?  You're 30 years old so why are you bothering your father who in your own words "needs a break?"

Have you even been able to find a mortgage lender willing to give you a mortgage with just 70 years left on the lease?

I have ^ already said in my original post, the lender has specifically told me in person that if the current owner starts the process to add the 90 years on the lease and I can provide evidence of this and the fact that I am able to finish it, they will consider lending to me.

I haven't always been on this salary, I actually was on a generic graduate salary 35000 until December 2019 until I got a new job (see my previous posts).

That is not a lot in London AT ALL. I'm buying outside of London in a commuter town and I have found the perfect place that I absolutely love, is a really great investment and I really want - if I don't make an offer it is going to go and I don't think I will find anything I love as much.

In the devastating situation in which I lose this house, of course I will save the old fashioned way. My question isn't about whether it's a good idea for me to buy the house - it's about whether the way in which I plan to do it is feasible - thanks

You did not say that in your OP.  All you said was, "The lease is low, way low; I will ask the current owner to begin process of renewing for 90 years as a condition of sale."  At no point does your OP even mention speaking to a lender or mortgage broker.

As for seeing your previous posts, I'm not going to trawl through your posting history so all I have to go on is your statement that you are in a strong financial position and earn £55k a year yet have not saved a suitable deposit.

Your father has a CCJ which was down to you and now you want him to take out a loan for you and commit mortgage fraud by declaring the loan as a gift yet you also say he "needs a break."  So give the poor guy a break.  He's willing to simply gift you the money so keep things simple and just take the gift instead of involving him in your convoluted scheme.

LOL you clearly don't like to read. The bullet point after that I clearly stated what the lender told me in my original post. 

No, I haven't, in the 2 months that I have had this much better paid job, saved the deposit. And the house IS going to go if I don't offer. Maybe, just maybe, if it takes long enough - say 4-6 months to complete, I will save enough then this will all be unnecessary but for now, I need a plan.

I will see if my dad can get a loan in the meanwhile and indeed commit mortgage fraud declaring the loan as a gift like millions of other people do. Heck, it's been ADVISED you do that on this very website lol. I doubt I'll lose sleep over lying to a bank.

I will refuse him outright giving it to me, even if it means I risk negative equity. That's how strongly I feel about him enjoying his money. As I will be making the repayments in full, it'll be like nothing has left his account. Will keep you posted!

[Deleted User]

annetheman said:

Lover_of_Lycra said:

annetheman said:

Lover_of_Lycra said:

If you are in such a strong financial position why do you not saved your own deposit?  You're 30 years old so why are you bothering your father who in your own words "needs a break?"

Have you even been able to find a mortgage lender willing to give you a mortgage with just 70 years left on the lease?

I have ^ already said in my original post, the lender has specifically told me in person that if the current owner starts the process to add the 90 years on the lease and I can provide evidence of this and the fact that I am able to finish it, they will consider lending to me.

I haven't always been on this salary, I actually was on a generic graduate salary 35000 until December 2019 until I got a new job (see my previous posts).

That is not a lot in London AT ALL. I'm buying outside of London in a commuter town and I have found the perfect place that I absolutely love, is a really great investment and I really want - if I don't make an offer it is going to go and I don't think I will find anything I love as much.

In the devastating situation in which I lose this house, of course I will save the old fashioned way. My question isn't about whether it's a good idea for me to buy the house - it's about whether the way in which I plan to do it is feasible - thanks

You did not say that in your OP.  All you said was, "The lease is low, way low; I will ask the current owner to begin process of renewing for 90 years as a condition of sale."  At no point does your OP even mention speaking to a lender or mortgage broker.

As for seeing your previous posts, I'm not going to trawl through your posting history so all I have to go on is your statement that you are in a strong financial position and earn £55k a year yet have not saved a suitable deposit.

Your father has a CCJ which was down to you and now you want him to take out a loan for you and commit mortgage fraud by declaring the loan as a gift yet you also say he "needs a break."  So give the poor guy a break.  He's willing to simply gift you the money so keep things simple and just take the gift instead of involving him in your convoluted scheme.

LOL you clearly don't like to read. The bullet point after that I clearly stated what the lender told me in my original post. 

No, I haven't, in the 2 months that I have had this much better paid job, saved the deposit. And the house IS going to go if I don't offer. Maybe, just maybe, if it takes long enough - say 4-6 months to complete, I will save enough then this will all be unnecessary but for now, I need a plan.

I will see if my dad can get a loan in the meanwhile and indeed commit mortgage fraud declaring the loan as a gift like millions of other people do. Heck, it's been ADVISED you do that on this very website lol. I doubt I'll lose sleep over lying to a bank.

I will refuse him outright giving it to me, even if it means I risk negative equity. That's how strongly I feel about him enjoying his money. As I will be making the repayments in full, it'll be like nothing has left his account. Will keep you posted!

You feel so strongly about him enjoying his money that you want him to have loan hanging over his head, that he will be legally responsible for paying, even though due to your past actions he has a CCJ on his credit file.  If you lose your job, become too ill to work, whatever, he will be on the hook for that loan, not you.

boo_star

annetheman said:

boo_star said:

Your plan is utterly bonkers.
Even without the CCJ your dad will have to pay more in interest than he'll get from his savings.  He'd be better off just giving you the money.

Secondly if he can get a loan with a CCJ it'll be at an eye-watering rate, think 40% plus, which you'd presumably be paying for.  It'll be seriously expensive to service the loan.

Thirdly as has been said he'll have to sign a document stating it's a gift.  It'd be better for him to lose £10k if you stop paying than £10k plus whatever silly interest charges it'll accrue monthly until it defaults.  And even then they could go for a charging order.

DON'T DO IT.

Thank you for the advice! 

The CCJ is my main worry - and it's all my fault (he was the guarantor on a flat I had at university) so I feel doubly bad about it; mine was taken off but because he was busy working in our underfunded hospitals, he couldn't make the court case anywhos, I think this is the first thing to find out.

Can he get the loan at a decent rate, as I said I would still be repaying him farrrrr less than I'm paying in London rent so if I have to pay extra I will. I'll consider it my penance for causing his CCJ in the first place!

Once we know about the loan, I think I'll come back and update y'all about the situation and find out what the consensus is.

He will not get a loan at a decent rate.  Don't even bother looking.

Ask him for the money outright or find another way to finance the deposit.

Why not offer to pay him interest on the loan equivalent to whatever the pittance he is getting now?

warby68

If there is no doubt whatsoever about you paying him back then using his own savings makes more sense than your plan, although you seem to be ignoring every response that says that. He will earn a lovely amount of interest from you, paid voluntarily of course. This is less fraudulent (although still decidedly iffy as to intent) as there is no compulsion on you to repay. You can still take a loan in your name as soon as you are able to repay him fully.
The vast majority of people actually choose not to act fraudulently with Banks by the way, its not the norm or the recommended way here either. There is some harshness towards repaying banks when you have difficulties yes, but not conning them from the outset.
You've already landed your dad with a CCJ - why would you want to involve him in more dodgy dealings when you are so keen to make up for that?
In any case, if its a 10% deposit and you have just got a £20k pay rise with no debt and a £300 rent saving, you could pay him back in a year, or alternatively save your own deposit in the same timeframe if this one falls through. If you can pay him back so quickly, using his savings makes double sense.

John_

It’s hard to know what to make of this. You were irresponsible enough with money to land your father with a CCJ yet now want to have him commit criminal fraud because you are still so bad with money that you don’t have a deposit saved for a house despite being on a decent wage.

No, of course it’s not a good idea. How about you start acting like an adult, and looking after yourself instead of making your poor father have to step in to sort out yet another mess of your own making?

lees80

Terrible idea. You need to get a grip and stand on your own two feet. Leave your Dad alone to enjoy his retirement years. 

[Deleted User]

Hahahaha let's get Dad to commit fraud.... Lol

What a great daughter.  

Go to a lender that does shared ownership and let's you use a personal loan in your own name for a deposit.   I assume you have explored this before getting dad to sign a falisifed legal document?

amandacat

I feel so sorry for your poor Dad.
Our daughter asked us to get a loan out for 5k last year for her house purchase as her and hubby couldn’t get one. My gut told me not to although my husband wanted to. I was brought up by my own parents to stand on my own two feet. I’ve never had any handouts when I got married, bought a house, I covered it all myself.  My husband is a typical Dad who would do anything for their daughter. 
I put my foot down on the loan and said no but we had 3k in savings and offered them £2500, £1k as a gift and £1500 as a loan. They got the other £2500 as a gift from his parents in the end. 
Anyway fast forward a year and we have had less than £200 of it back, all we got was how skint they are, can’t afford to eat and she got pregnant. In the end we just told them to forget the rest. Since then not a mention of being skint and they’ve managed to afford lots of house makeover jobs. 
If we had took out the loan we would be stuck paying it. I’m glad I trusted my gut. Unfortunately we were left with £500 savings and my husband was off work following an op recently for 2 months. The £2500 that would’ve got us through the 2 months was gone and we were left in hardship. 
The reason I’m telling this story is parents will often do anything for their kids. It’s sad that after previously affecting your Dad’s credit rating you want to get another loan from him or use his savings. I really think you need to stand on your own two feet. My daughter won’t be getting any further big lumps of money or loans from me, I know if I wasn’t around my husband would give her money again because he’s a softy where she’s concerned and it sounds like your dad is the same. 

amandacat

I just wanted to add that you can still have a personal loan and a mortgage. So get a personal loan in your own name and you can tell the bank it was for a car or other purchase, as you are happy to be flexible with the truth.  I’m not judging, I know a few people who have done this and managed just fine.  You can then get your Dad to say he gifted you the deposit if needed. 
The only way you won’t be able to get a mortgage is if the mortgage lender deem that between your mortgage payment and loan repayment that your outgoings are too high. If they don’t then happy days. If they do then it’s judged not affordable and you shouldn’t put your Dad at risk of having to pay it back.