Helping someone with a mortgage deposit.

BlackOps

Winger
The solicitor will need a form signing if its a gift to say they do not expect any money back in return etc. Not sure what happens if its not a gift, i guess the mortgage company have to agree they are happy you owe money to someone else and so will they if you default
 

NE25Jambo

Reserve Squad
I was given my deposit by my parents on the agreement that when I sold the flat I paid them back, I sold the flat and paid them back because if I didn’t I wouldn’t be able to look them in the eye.

Never a lender or borrower be my dad would always say.
 

42

Midfield
I was given my deposit by my parents on the agreement that when I sold the flat I paid them back, I sold the flat and paid them back because if I didn’t I wouldn’t be able to look them in the eye.

Never a lender or borrower be my dad would always say.
And you'd get no inheritance
 

NE25Jambo

Reserve Squad
And you'd get no inheritance
very true!

my gran had dementia and because she owned her own house the government wouldn’t fund her care so they had to sell her house. She ended up in a home getting the same level of care as people who’s was state funded which I think is a disgrace personally. They have put their house into my name so that should the worst happen it is protected. Not sure how that works like but Dad sorted it so same didn’t happen.
 

Tuono

Goalkeeper
My missus told her nephew (a mag) if he got a mortgage she'd give him money to help furnish his home. He got a mortgage so she gave him £2,000 to furnish the house, he spent the money on shares in a gold prospecting company. Like I keep reminding her every chance I get, he's spent her gift on gambling.
 

bassman

Goalkeeper
Couples all the time I imagine.
Me and my lass saved for years like to finally get enough for our deposit, didn't get any help from family as they weren't in the position to help. Glad to finally get sorted but it took some saving.
 
Obviously some people will do this with their kids etc and not necessarily expect it back.

But say you were to help someone out with their mortgage downpayment because it's in your interest to do so, is there any contract you can put in place to protect your money should they decide not to pay it back?

Should stress I'm not going to do this, was just thinking about it and surely it occasionally happens and causes a lot of disputes.
Barclays do a mortgage where savings from a family member can be used against the deposit and as long as payments are kept up they get their savings plus interest in 5 years time
 

danielsan

Midfield
Obviously some people will do this with their kids etc and not necessarily expect it back.

But say you were to help someone out with their mortgage downpayment because it's in your interest to do so, is there any contract you can put in place to protect your money should they decide not to pay it back?

Should stress I'm not going to do this, was just thinking about it and surely it occasionally happens and causes a lot of disputes.
Banks offer special scheme mortgages when it comes to a deposit whereby they keep a legal charge over it for a bit, then after a certain amount of time, if the mortgage is all in order you get your money back plus interest. However if that mortgage doesn’t get paid. Your not getting your money back until it meets certain criteria.

Both of you need independent legal advice and depends how much you trust that person to make the mortgage payments.

Interest rates for you deposit are much higher than savings accounts too.
 

kossoff

Striker
Lent the wife's sister £1000 when she moved into a new flat for carpets and stuff on the condition that I got it back after
she'd moved in and the council had refunded her costs (which was all agreed).

After 3 months, many hints by me and her constantly out on the lash on facey, I asked her straight. "When do you plan on paying me back this £1000"

To which she replied "What are you talking about, I got the money through a week after I moved in and gave it to my sister to give to you!"

So I asked the wife "Where's the money?"

"Dunno, must have spent it on stuff like them clothes and that handbag 'n' that"

Fuming wasn't the word she basically blown the lot on clobber in one afternoon. We didn't speak for a few days after that.
Should have left her for her more sensible sister.
When I split from an ex years ago, I made her sign promissory note with how much she owed. She was terrible with money prior to our relationship, think she got a bit better during/after.

Not sure what weight a promissory note would hold in court but luckily it was enough for her to pay me and I never needed to find out.
 
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AndrewP

Striker
When you transfer money electronically and put the reason for transfer as a "loan to friends or family" in the click box would this not cover that person in any way?
That's no reason box, just a reference.

They'll need more than that.
 

safcsafc

Midfield
very true!

my gran had dementia and because she owned her own house the government wouldn’t fund her care so they had to sell her house. She ended up in a home getting the same level of care as people who’s was state funded which I think is a disgrace personally. They have put their house into my name so that should the worst happen it is protected. Not sure how that works like but Dad sorted it so same didn’t happen.
What if something happens to you though?
 

Kevsgreat

Striker
Our lass put down the deposit on this place. If there was ever a reason to sell and split the proceeds her share would include that. Nothing legal signed, I'm just not (that much of) a horrible knacker to want to walk away with someone else's money.

In amongst these tales of people missing out on being repaid I've got to say I'm very, very grateful to a mate of mine who helped me out a few year back. This month will see it paid up. Again, nothing legal drawn up, and the thought of something going wrong did make me think long and hard about taking up the offer, but in the end it was a big help from a top fella.
 

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