FTB - Deposit contribution from employer grant

waseem432000

Hi everyone, 

I opened LISA around Christmas time and started saving in that for the deposit. I had some savings so used my full allowance for the year and plan to use next years in April to ensure I have 10k ready in that account at end of the year so quite serious on buying a flat.

I am currently on a skilled worker visa and will be eligible for ILR in the summer and my employer has recently offered me that they will be happy to pay me for my and my family’s ILR fees (around £10k) and I can return that amount by working for them for two more years so I will effectively be returning that loan by work contribution. I have been thinking that I can use that full 10k to add to my deposit and can pay the visa fees from my credit card(I will only have to pay for my and my spouse’s fees so was going to spend around £5000 anyway). 

I know there are strict rules on what sort of money can you use for deposit and if I am allowed to do that, will I have to declare that in my mortgage application as loan? If I switch the job or company decide to let me go, I would have to return the pro rata amount. 

propertyrental

Yes you'll need todeclare the loan to your mortgage lender.

Have you spoken to an independent mortgage broker about your plans?

Out of interest, what kind of work do you do? Being tied to an employer for 2 years to pay off your indefinite leave to remain fees sounds almost like a slave labour arrangement. Your employer is taking a big risk that your work off this debt but maybe is just very generous.....

waseem432000

propertyrental said:

Yes you'll need todeclare the loan to your mortgage lender.

Have you spoken to an independent mortgage broker about your plans?

Out of interest, what kind of work do you do? Being tied to an employer for 2 years to pay off your indefinite leave to remain fees sounds almost like a slave labour arrangement. Your employer is taking a big risk that your work off this debt but maybe is just very generous.....

I haven’t taken any mortgage advice as I am in initial stages but this might be something I should probably do at this stage as well as next question I have is will I have to declare the full 10k or the remaining amount at mortgage application time (they will be writing off £400 a month for every month I work for them after my ILR). 

I work in IT and I have worked for this employer for almost 5 years now plus I wouldn’t say it’s a slave Labour thing as I will always be free to leave whenever I want, I will have to clear my remaining amount at that time tough, and it doesn’t really make a lot of difference for me in actual sense as if I don’t take that grant, I will use a credit card to pay visa fees so will be returning that money either to credit card company or employer(by working). 

On them being generous, it makes perfect business sense on their part and this same offer has been made to 4 other individuals in almost same situation as me. The firm we work for, is planning to expand their business and they would want experienced people who know their technology stack, working style and have good relations with their existing main clients to help them do that in initial stages hence they are trying to incentivise us to stay. There also have been talks of company shares and other financial incentives but I guess they would need a few of us for the next 18 months to 2 years to keep the velocity on their expansion plans.