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  • FIRST POST
    • el_nino
    • By el_nino 15th May 18, 11:22 PM
    • 10Posts
    • 2Thanks
    el_nino
    Gifted Deposit
    • #1
    • 15th May 18, 11:22 PM
    Gifted Deposit 15th May 18 at 11:22 PM
    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.

    Iím not sure the best way to do it.

    Thanks for any help
Page 1
    • anselld
    • By anselld 16th May 18, 7:26 AM
    • 5,917 Posts
    • 5,643 Thanks
    anselld
    • #2
    • 16th May 18, 7:26 AM
    • #2
    • 16th May 18, 7:26 AM
    Iím not sure the best way to do it.
    Originally posted by el_nino
    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
    • By el_nino 16th May 18, 7:44 AM
    • 10 Posts
    • 2 Thanks
    el_nino
    • #3
    • 16th May 18, 7:44 AM
    • #3
    • 16th May 18, 7:44 AM
    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 donít want be in any trouble because I have chosen to do so.

    Appreciate the help
    • poppy10
    • By poppy10 16th May 18, 2:39 PM
    • 6,011 Posts
    • 7,264 Thanks
    poppy10
    • #4
    • 16th May 18, 2:39 PM
    • #4
    • 16th May 18, 2:39 PM
    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
    • foxy-stoat
    • By foxy-stoat 16th May 18, 4:46 PM
    • 2,815 Posts
    • 1,593 Thanks
    foxy-stoat
    • #5
    • 16th May 18, 4:46 PM
    • #5
    • 16th May 18, 4:46 PM
    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
    • By TJB24 16th May 18, 5:13 PM
    • 4 Posts
    • 2 Thanks
    TJB24
    • #6
    • 16th May 18, 5:13 PM
    • #6
    • 16th May 18, 5:13 PM
    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
    • By John-K 16th May 18, 9:38 PM
    • 654 Posts
    • 1,024 Thanks
    John-K
    • #7
    • 16th May 18, 9:38 PM
    • #7
    • 16th May 18, 9:38 PM
    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.

    Iím not sure the best way to do it.

    Thanks for any help
    Originally posted by el_nino
    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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