Not had any dealings with mortgage companies for years. Giving our daughter monies for deposit and lender making some seemingly odd requests(to me anyway). Like to DM to get some clarity from someone in the game?
Happy to help. Send me a DM if you want to chat through anything. They’ll need to confirm source of funds you’re providing and also establish if you are gifting / loaning the funds as it has different implications.
They will ask for all sorts of stuff to prove you're not money laundering. I bet whatever it is they've asked, it's competely normal, they're legally obliged to make sure all is legit.
Have you seen that family ISA thing? You pay the deposit. If they keep up with payments? You get your money back with interest
Yeah, we’re doing a similar thing with Lloyd’s called lend a hand. We put deposit in bank for 3 years as long as they make payments we get it back with a little interest.
If you can trust them enough to just lend it instead then you should. The money you get back and the interest just means that after the 3 years your child’s mortgage basically resets again like they’ve paid nothing as everything they’ve paid just gets paid back to you with interest so they have zero (or possibly negative) equity if house prices have fallen. Also, if you lend them it instead then they’re not tied to a specific lender and they will probably get better rates as the lent money will count towards their equity.
All sound advice, we opted this way for a couple of reasons(some personal to her), but also we have committed to giving that money to her, so in 3 years the plan is she will get all the money returned to us and she will pay off a lump sum and can then choose a mortgage lender of her choice therein after.