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Mortgage Question

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  • 24-02-2009 9:51am
    #1
    ascottdub
    Closed Accounts Posts: 47 ✭


    Hello Everyone,

    If anyone out there knows anything about the following, I'd really appreciate a reply.

    Ok, I'm in the middle of applying for a mortgage, and my dad had agreed to gift me some cash towards it.
    However, my Dads assets are in 5/7 year accounts. Only realised this recently
    He is willing to put a lien on 1 of these to help me, but the mortgage lady didn't seem to know if this was possible, which I thought was very strange
    Has anyone had experience of this??, or any bank people out there that knows if this can be done?
    I hope I've explained this correctly

    Thanks in advance for your time


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Its two seperate transactions.
    Your father will not be able to put a lien on his 5/7 year account towards gifting you a sum of money towards your mortgage. He can however take out a personal or a term loan- possibly interest only, with a due date of when sufficient of the 5/7 year accounts mature to clear the loan and any accumulated interest and charges- and use the current principle in the accounts as collatoral towards the loan. He would then gift you the proceeds of the loan- as a wholly seperate transaction.

    Its not straight forward- and in the current climate- its entirely possible that his financial institution may refuse to play ball.

    A more elegant solution may be to remortgage his PPR and gift you the equity released- with an understanding that the term associated with the equity release be cross referenced with the 5/7 year investment accounts.

    The problem is your fathers assets are illiquid, and the banks and lending institutions are far less inclined to extend credit these days than they once were.


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