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Can a loan from family be considered a mortgage

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jf2
jf2 Posts: 3 Newbie
First Post
We live in Scotland. A number of years ago we provided a loan for the full purchase cost of a flat to our daughter, who agreed to repay monies to us. This was done through solicitor and we have paperwork in place to in place to confirm this. Recently my daughter has decided she would like to take out a personal loan to cover some home improvements. The issue is that in the loan application it asks if you are a home owner and do you have a mortgage. When she has taken out various insurances previously she has stated that she has a mortgage. But now we are unsure whether this is correct. How should she answer this question?

Comments

  • Clive_Woody
    Clive_Woody Posts: 5,937 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Is this debt secured against the property? What does it say on land registry, was this debt secured by the solicitor?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • jf2
    jf2 Posts: 3 Newbie
    First Post
    Yes the debt was secured against the property and is noted in the registry
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Then a private mortgage exists. Is the loan being applied for a secured one? 
  • jf2
    jf2 Posts: 3 Newbie
    First Post
    It would be an unsecured loan
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