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Mortgage as a gift
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GSTAR
Posts: 58 Forumite
My Dad is looking to buy a house. He sold his one and only home just over a year ago and has since been living at my house. The sale was due to a separation, so he split the proceeds of the sale with his partner.
He is currently around £60k short of the purchase price for a half decent house. He is a pensioner and has no other income, therefore he cannot get a mortgage.
I myself currently have a mortgage on my property. I was wondering if I should look at borrowing an extra £60k from my current mortgage provider and then passing that on to my dad as a gift?
Will this be possible to do and if so, is there anything I need to be wary of? Obviously the liability for repayments lies with me - which I'm happy to accept.
In an ideal world I would just get a mortgage and purchase the house in joint names, but then that would be classed as a second home for me and thus make me liable for higher SDLT.
He is currently around £60k short of the purchase price for a half decent house. He is a pensioner and has no other income, therefore he cannot get a mortgage.
I myself currently have a mortgage on my property. I was wondering if I should look at borrowing an extra £60k from my current mortgage provider and then passing that on to my dad as a gift?
Will this be possible to do and if so, is there anything I need to be wary of? Obviously the liability for repayments lies with me - which I'm happy to accept.
In an ideal world I would just get a mortgage and purchase the house in joint names, but then that would be classed as a second home for me and thus make me liable for higher SDLT.
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Comments
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what are you going to declare the extra lending as?Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Home improvements I guess? I mean I do need a new double story extension on my home..1
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I think you do, rather than (fraudulently) telling them you're buying an additional property.housebuyer143 said:Capital raising to buy additional property is fairly standard. You don't have to tell them it's a gift i suppose.0 -
Some lenders will lend for anything legal - normal rates etc.
No need to lie and risk any negative markers against your name.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.2
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