mortage enquiry?!

[lsharp]

hi
please only answer this if u no the answer or can b of any help, basically my parents are selling there house to move into a new one, they want to sell there house to me and my partner but we cannot and no way can we afford to find the money for deposit and solicitors fees, we have discussed taking out a loan but have been told by a mortgage advisor we cannot do this as it is not pur savings!
so, my father said we will go to our mortgage advisor and suggest him taking out a bridging loan that covers his new home and enough for us to cover deposit etc, he said that money will be a gift and does not want it back as the house they want is alot less than his now so will make a large profit
does anyone no if it is as straight forward as this lol? we are seeing a mortgage advisor next week but im curious and they have set there heart on there new home and we would LOVE theres
thanks xx

[starone]

A bridging loan? Is he/you or anyone, mad? Bridging loans cost the earth in interest rates. No-one in their right minds would take one out. Sorry to be so forthright but......

[lsharp]

there is no other way about it whats so bad about them then

[johnny37]

Im not a lawyer but I see nothing wrong in what you are suggesting. Seems straightforward to me. Your parents pay the deposit on the house from the proceeds of the sale. I dont think there even has to be a bridging loan if the transfers are all done on the same day. There's no rule that the deposit has to be savings. Many parents pay their childrens deposit.

[lsharp]

hi, they need to sell there house to buy there new one so we would have to buy it first, a mortgage advisor told us if we took out any loans for the deposit they would no and it would be declined with no hesitation

[Gizmonster]

Dunno if this helps but how's about ......
Your parents sign their house over to you - it's a gift and it's perfectly legal. They stay living there and you stay where you are for the time being. When the house is in your name, you apply to mortgage it, just enough to cover the costs of your parents' new house .... the less equity you require, the better. When the money is in your account you give it to your parents and they then use this to buy their house.
It sounds too good to be true, but as far as I can see it's all perfectly legal :)

[ummmm]

Bad idea Giz.

[boxtops]

If isharp can't get a mortgage after that happens, everyone's stuffed. Please don't let your father take out a bridging loan, they cost a fortune. Unfortunately we can't always get what we want - do you have any idea if you'll be accepted for a mortgage anyway. How old is your father? Gifts of large amounts of money can be treated by suspicion by the taxman.

[ubasses]

As long as you can get a Mortgage fot the amount you need, the whole transaction can take place at the same time. Tell the Mortgage Company that your parents are gifting you the deposit. (they will probably want something in writing from them to this effect).
On the day your parents complete the purchase of their new property, your mortgage will be paid over to your parents solicitor, he will use this to purchase the new house along with any further cash/ if any that they are putting in.
The difference between your mortgage and the value of the house is the deposit from your parents.
The money they have gifted you would be classed as a Potentially Exempt Transfer so no tax to pay as long as they live 7 years.