Mortgage Deposit - Cash Gift/Loan From Close Friend

Safe'n'Sound

Hi forum, any help here would be appreciated.
My friend of many years has become wealthy, through the sale of his business and any work he has done since. He is a UK citizen that now lives abroad (USA) most of the year. He has kindly offered to gift me £50,000 to assist towards our mortgage deposit. The money might not be used straight away and could be transferred into Premium Bonds for several months until we find our home. I know he wants to gift the money but I want to pay the money back in the future, possibly similar the a HTB scheme. The repayment details are still to be arranged.
I just wondered if this a simple transfer to my bank or there are complex hurdles in the way?

davidmcn

Lenders prefer gifted deposits only to come from close family members rather than "friends" - and also want them to be genuine gifts with no strings attached.

AnnieCannyScot

I wish to help my daughter on to the property marker. She is self employed very resourceful but in this current climate I can't see her being excepted for a mortgage. I have considered a guarentor mortgage but I think the easiest way would be for me to use my savings to help her buy. Between my savings and half value of the house I still am not in the inheritance tax bracket. Can I give her the money without any tax issues.

davidmcn

AnnieCannyScot said:

I wish to help my daughter on to the property marker. She is self employed very resourceful but in this current climate I can't see her being excepted for a mortgage. I have considered a guarentor mortgage but I think the easiest way would be for me to use my savings to help her buy. Between my savings and half value of the house I still am not in the inheritance tax bracket. Can I give her the money without any tax issues.

Might be better if you start your own thread rather than piggybacking onto the OP's rather different query.

[Deleted User]

Money originating in US dollars is an issue for a lot of lenders. 
Coming from someone who isn't an immediate family member will be an issue for most lenders.
Having it set up as a repayable loan is an issue for most. 

It's probably placeable but one for a broker

Thrugelmir

Is your friend intending to make an "investment" in the property? 

Sistergold

I think they will not accept a loan for use as deposit as payment of that loan will impact on affordability in the lenders eyes. It normally has to be a gift from family and a gift is not expected to be paid back. Well that’s my understanding but best talk to the experts. 

Safe'n'Sound

Thanks for the replies. I only hinted at the 'gift' being paid back as that's my intention and not his. The money is not being given to me as a loan, in its original form, that's just me being true to myself. I can hold back on the 'idea' of paying back and class it as a gift for now if that makes things easier. From the replies though, it looks like a cash gift is better from a close family member rather than good friend.