assigning equity

[meerkatsmimm]

My mother gave us money to pay the deposit on our house - we would now like to ensure that (in the current financial climate) if for whatever reason, bankruptcy etc, we need to sell our house she gets her money back before any other unsecured debts are paid. How do we do this? and do we need to notify the mortgage company?
Thanks--

[Ethel]

You can't assign what you don't have.

Your mortgage company will always take precedence no matter what you do and unsecured loans can easily be secured against your property if you default on the repayments.

[meerkatsmimm]

What do you mean i can't assign what I don't have - surely the equity in the property is mine?

I know the mortgage company gets precedence. I've also no intentions of selling any time soon, but i'd like to get finances in order.

What I would like to do is ensure that the substantial deposit she gave us for the property would get paid back to her, before other debts, such as credit cards etc, which are unsecured debts.

Can she put a charge on the property - in the same way any other creditor can?

[sue34]

Sorry to say their would be no benefit in doing this because she would always stand behind the other creditors
She could go on the mortgage but would have to pass the right checks etc and she could own a benefit in kind i.e. 10% but that�s if your mortgage is very recent if not this should have been set out with a solicitor from the time of the gift .you will need to see a solicitor.but be warned any change in your mortgage in this down turn could result you losing your home. because they could make you re mortgage and you may not get the times salary as you did when you first had your mortgage
source......
I�m an accountant

[sue34]

And no she cant put an charge on the house because she needs to prove she owns equity in the house and credit card companies etc have to have a county court judgment to put an charge on a property
you say you own equity in the house in this down turn if the sh*** hi the fan your house would be sold for nothing and you would still owe the mortgage company