Family Mortgage

Willsie01

It looks like the best way to help my daughter, without creating problems for ourselves, is to loan them money to buy a house in their own right. I have tried to find information on lenders who will grant a mortgage on a property where the BoMaD are providing a loan toward the purchase of a house. The only company I know of so far is the Family Building Society. Names and reviews would be ideal if anyone knows of any.

silvercar

Willsie01 said:

It looks like the best way to help my daughter, without creating problems for ourselves, is to loan them money to buy a house in their own right. I have tried to find information on lenders who will grant a mortgage on a property where the BoMaD are providing a loan toward the purchase of a house. The only company I know of so far is the Family Building Society. Names and reviews would be ideal if anyone knows of any.

It is because you are making a loan rather than a gift that is limiting the choice of lenders. If you made a gift (and you could potentially adjust your will to allow for this gift compared to siblings inheritance) then there would be more options. Also if you have a significant income you could go on the mortgage with your daughter and that would allow her to borrow more money.

Willsie01

silvercar said:

Willsie01 said:

It looks like the best way to help my daughter, without creating problems for ourselves, is to loan them money to buy a house in their own right. I have tried to find information on lenders who will grant a mortgage on a property where the BoMaD are providing a loan toward the purchase of a house. The only company I know of so far is the Family Building Society. Names and reviews would be ideal if anyone knows of any.

It is because you are making a loan rather than a gift that is limiting the choice of lenders. If you made a gift (and you could potentially adjust your will to allow for this gift compared to siblings inheritance) then there would be more options. Also if you have a significant income you could go on the mortgage with your daughter and that would allow her to borrow more money.

Yes, I know, but the size of gift they would need is too high to be fair to our other children. Potentially liable to IRT. Although I’d like to think that unlikely given the 7 year rule but you never know.
Daughter doesn’t want a gift she wants to pay us back. 

silvercar

Willsie01 said:

silvercar said:

Willsie01 said:

It looks like the best way to help my daughter, without creating problems for ourselves, is to loan them money to buy a house in their own right. I have tried to find information on lenders who will grant a mortgage on a property where the BoMaD are providing a loan toward the purchase of a house. The only company I know of so far is the Family Building Society. Names and reviews would be ideal if anyone knows of any.

It is because you are making a loan rather than a gift that is limiting the choice of lenders. If you made a gift (and you could potentially adjust your will to allow for this gift compared to siblings inheritance) then there would be more options. Also if you have a significant income you could go on the mortgage with your daughter and that would allow her to borrow more money.

Yes, I know, but the size of gift they would need is too high to be fair to our other children. Potentially liable to IRT. Although I’d like to think that unlikely given the 7 year rule but you never know.
Daughter doesn’t want a gift she wants to pay us back. 

Paying a gift back is fine, if it is given as a gift not a loan.

You can get round these problems, potentially the siblings could end up owing a small percentage of the property or that your daughter owes them some money eventually.