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Loaned money for house purchase from family member
rundmc-k
Posts: 133 Forumite
We have recently had sale agreed on a property we are hoping to buy. As we don't have a mortgage on our current property, our plan was to buy first, take on a large mortgage, then sell asap to reduce the mortgage costs.
We are in a fortunate position however that my brother has offered to loan us the money so we can be cash buyers, with an aim to pay him back at a mortgage rate slightly lower than the bank.
We have just started proceedings with our solicitor and they are requiring evidence/history of funds. I was just wondering, is there any "best way" to do this? Should I ask my brother to send the money to me and then send the solicitor my bank account details, or should I ask my brother to give me his account details and history of his income so that I can provide that to the solicitor, with a view to him transfering the money directly to them when the time comes?
I'm just unsure as this is my first house move since being a first time buyer 17 years ago.
We are in a fortunate position however that my brother has offered to loan us the money so we can be cash buyers, with an aim to pay him back at a mortgage rate slightly lower than the bank.
We have just started proceedings with our solicitor and they are requiring evidence/history of funds. I was just wondering, is there any "best way" to do this? Should I ask my brother to send the money to me and then send the solicitor my bank account details, or should I ask my brother to give me his account details and history of his income so that I can provide that to the solicitor, with a view to him transfering the money directly to them when the time comes?
I'm just unsure as this is my first house move since being a first time buyer 17 years ago.
0
Comments
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You will need to send the money to your solicitors but they are going to want to know where your brother got the money from before he sent it to you.1
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The source of the funds will be subject to Money Laundering checks. Given the amount involved there'll be no short cuts or assumptions. A documented audit trail will be required.1
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We purchased a bungalow in 2020 with my in laws savings. They provided the necessary proof direct to the solicitor when requested. Once the solicitor was happy money was transferred from in laws to solicitor to complete the purchase.My in laws then put a charge on the bungalow for the amount they had lent us.Once the bungalow was in a mortgageable condition we took out a standard mortgage and repaid the loan.It was actually very simple to do as long as the money is from a legitimate source.3
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Doesn't really matter which option, the solicitor will need to check the source of funds (so will need ID / bank statements from your brother as well as you). Ask your solicitor exactly what they need, there aren't standard requirements.1
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Thankyou to everyone for your responses, that's very helpful0
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