Using a personal injury trust for mortgage deposit 31 January 2021 at 5:49PM in Mortgages & endowments 2 replies 151 views

Julesc12

I have been advised to set up a personal injury trust fund with the compensation I have been awarded as this protects my compensation, incase in the future I need to claim benefits. I want to get a mortgage and wanted to use money from the trust for the deposit - I have read that if you do this the deposit is in the trusts names, again to avoid the DWP from saying that you have wasted money. I've been looking into this and it seems that lenders dont like trusts buying houses. Can anyone tell me if they have bought a house through a p I trust fund, or the deposit (not for a child) and if it did cause problems

Thank you 

HobgoblinBT

We purchased a house on behalf of and for the benefit of my mentally handicapped brother in law through a trust, and paid in full without a mortgage.  The solicitor drew up a deed of trust that I think is referenced in the title documents. 

The due diligence required these days by a lender to open an account in the name of a trust makes it a real faff which is why lenders don’t like them.  Unless of course that you are wealthy enough to be a client of a Private Bank.

Thrugelmir

When you set-up the PIT. The professional advising you may well be best placed to guide you as to how you utilise the funds.