Gifted Deposit

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el_nino
el_nino Posts: 10 Forumite
in Mortgages & endowments
Hi, need a bit of advice.

We have a mortgage in place and just need to complete a form to state that the deposit we are using is a gift from a parent and that they do not want the money back. However we want to give the money back as soon as we can will this cause any problems? It says we could be committing mortgage fraud if we do this.

I’m not sure the best way to do it.

Thanks for any help

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  • anselld
    anselld Posts: 8,280 Forumite
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    el_nino wrote: »
    I’m not sure the best way to do it.

    There is no "best way". The only way it works is if it is a gift without strings attached. Is it?

    There is nothing to stop you making a similar gift at some point in the future if and when you can affort to, but that cannot be an agreement at this point.
  • el_nino
    el_nino Posts: 10 Forumite
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    So yes it is a gift with no strings attached, but we would however like to repay the money as our choice if and when we want to. Is there a minimum time we have to wait before doing this or could we pay it back a month later if we wanted?

    Where the uncertainty is on my side is how would they no I have given the money back and if I did I don’t want be in any trouble because I have chosen to do so.

    Appreciate the help
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
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    There's no problem with giving the money back
    The only problem would be if you had an agreement (either written or otherwise) that you are going to give the money back
    poppy10
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    A gift is a gift - you would not be committing mortgage fraud unless there was a written enforceable agreement in place that it was a loan.

    You can repay money back to your parents at any time, the payments will be a gift as well.

    There is a similar thread on this were the gift was a loan and they want the money back. Here the gift is a gift, its just that you want to repay the gift back.
  • TJB24
    TJB24 Posts: 44 Forumite
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    Talking about my thread posted today.

    I've unfortunately ended up in the situation where my parents have demanded I repay. It really depends on your relationship with them. Normally I would say get a written contract, however you cannot declare it as a gifted deposit and have it as a private loan agreement. Most banks will not accept a private loan as it affects your affordability calculations and increases the bank's risk. However, I have read about some banks that now will accept it - but probably for higher fees.

    Agree with the advice to just treat it as a gift to you, and then a gift back later.
  • John-K_3
    John-K_3 Posts: 681 Forumite
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    el_nino wrote: »
    Hi, need a bit of advice.

    We have a mortgage in place and just need to complete a form to state that the deposit we are using is a gift from a parent and that they do not want the money back. However we want to give the money back as soon as we can will this cause any problems? It says we could be committing mortgage fraud if we do this.

    I’m not sure the best way to do it.

    Thanks for any help

    Yes, of course it would be fraud, you are intending to lie and claim that a loan is a gift.

    What are you asking?
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