95% deposit but cannot get mortgage

user1977

se2020 said:

silvercar said:

housebuyer143 said:

Do you need a mortgage to use your Lisa? Don't you just need to buy a house?

Yes you do. You can get a private mortgage, but it would need to be from someone who isn’t a relative or in law of a relative. I think an aunt or uncle would be the nearest relative allowed. Or it could be from a friend or business colleague.

easiest way would be for one of you to find some employment for the short term.

They changed the wording on this in April.
It now says "anyone connected""

I'm not sure how distant a relative needs to be or what happens if a god parent also happens to be a private mortgage lender?
Or how far they go into checking for connections?

It might be similar to the definition of "connected persons" used for CGT:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14580

(or might not be, I haven't dived deep into the rules, and tax rules aren't necessarily consistent!)

silvercar

user1977 said:

se2020 said:

silvercar said:

housebuyer143 said:

Do you need a mortgage to use your Lisa? Don't you just need to buy a house?

Yes you do. You can get a private mortgage, but it would need to be from someone who isn’t a relative or in law of a relative. I think an aunt or uncle would be the nearest relative allowed. Or it could be from a friend or business colleague.

easiest way would be for one of you to find some employment for the short term.

They changed the wording on this in April.
It now says "anyone connected""

I'm not sure how distant a relative needs to be or what happens if a god parent also happens to be a private mortgage lender?
Or how far they go into checking for connections?

It might be similar to the definition of "connected persons" used for CGT:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14580

(or might not be, I haven't dived deep into the rules, and tax rules aren't necessarily consistent!)

So again, aunt or uncle could well be the nearest relation that isn’t defined as connected.