Buying a House - Money from parents

They will NOT care about a cash deposit, they will care about your outgoings which you would have to declare.

They can ask to see your bank statements (and often do)

Not at all, it's all up fronmt and above board.

It was *her* intention that she would pay me back some day. It was not a condition.

Not half as much as if you try to hide it.

In message , Zoe Brown writes

I know! That is why lender's DO care where the dosh came form.

In message , Zoe Brown writes

But at the time of the application you wouldnt have taken the extra loan and therefore you wouldnt need to declare it and it wouldnt show on a credit search.

In message , snipped-for-privacy@isbd.co.uk writes

Not in broad meaning, but the second is more exact than the first. IMO.

Not if it is CASH !!! They will not care if the cash has been given to them by the parents, which is waht I was saying !!

sure you would.

In message , Zoe Brown writes

And the proceeds of any loan wouldnt manifest itself as cash?

In message , Zoe Brown writes

Why?

it would be fraud not to disclose your actual financial position when applying for a loan !!!

In message , Zoe Brown writes

How does that effect the situation?

By doing what I have suggested no fraud would be committed.

It is in order to ensure that action such as I have suggested is NOT going to be undertaken by the borrower that mortgage companies care about where the deposit comes from and therefore ask the specific question about the source of the deposit.

It doesn't, it might affect it though.

Because they may start investigating if you really wont be paying back, want forms filling in to make sure, want agreements made and signed and documented and triplicated, and then they will likely charge you for all that. Or maybe even disallow the transaction (more likely when a lender is involved, which rather later in the day, IIRC, we were told wasnt the case.

So in that case it *was* a loan. Whether or not it wasa condition was immaterial. I suppose you neatly sidestepped it by saying that from you it was a gift :-) Did she have to sign that she wouldnt pay it back? Otherwise isnt there soemething about lying through omission?

WIth your solicitors maybe (or hers?). For others, good chance they would want something documented, signed, witnessed and they would charge you.

If its a fairly simple thing, lets say you need 10k deposit, only have 7k, and parents lend you 3k which you intend to pay back (and they believe will be paid back) but its all done on trust, no agreements to pay back, there is no chance they will find out. Lets say this happened to someone I know very well with their first house. They could pay it back easily but had the mortgage co known they wouldnt have given the mortgage since it would have broken their maximum (and anally inforced) earnings multiplier limit. This was many years ago, things may be different now.