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15% Deposit for 1st Time Buyer

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Comments

  • hazyjo
    hazyjo Posts: 15,475 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Barny1979 said:
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    But they often don't question it too stringently, she could say the money has been gifted by her parents.
    They do. They will want proof it's a gift.
    2024 wins: *must start comping again!*
  • Benjy79
    Benjy79 Posts: 11 Forumite
    First Post
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    Isn't that more if you have borrowed it yourself?

    As long as the parent states its a gift then they won't care of the parent borrowed it in the first place.
  • Benjy79
    Benjy79 Posts: 11 Forumite
    First Post
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    Isn't that more if you have borrowed it yourself?

    As long as the parent states its a gift then they won't care of the parent borrowed it in the first place.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Benjy79 said:
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    Isn't that more if you have borrowed it yourself?

    As long as the parent states its a gift then they won't care of the parent borrowed it in the first place.
    Maybe, but why the drama, there will be the same or similar house cheaper in the future? HTB is for developers benefit, not to help the OP`s daughter.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 16 July 2020 at 2:18PM
    Benjy79 said:
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    Isn't that more if you have borrowed it yourself?
    As long as the parent states its a gift then they won't care of the parent borrowed it in the first place.
    Yes, but the suggestion was that the mother lends it to the daughter rather than gifts it.

    Mother borrowing it and then gifting it shouldn't (in theory) be a problem, though I have heard of lenders querying it (presumably because it would seem less likely to be a genuine gift in those circumstances).
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Borrowing money to fund a debt they obviously can`t afford in the present climate? Not very smart or "money saving" IMO.
  • davidmcn said:
    Benjy79 said:
    davidmcn said:
    If she can't afford it, she can't afford it, that's life. Or you could be wonderful parent and lend her the £3,500  she needs (taking out a loan in necessary) and then she could afford it.
    Mortgage lenders don't like deposits being borrowed.
    Isn't that more if you have borrowed it yourself?
    As long as the parent states its a gift then they won't care of the parent borrowed it in the first place.
    Yes, but the suggestion was that the mother lends it to the daughter rather than gifts it.

    Mother borrowing it and then gifting it shouldn't (in theory) be a problem, though I have heard of lenders querying it (presumably because it would seem less likely to be a genuine gift in those circumstances).
    A parent borrowing £3,500 is virtually peanuts to give to a child for their forever home !
    my sons have costs me £100,000 each 
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