Saving for mortgage/ Gift from parents

christy G

Hi myself and parnter are saving for a mortgage, I rent out an apartment and get 1,200 a month payment from that goes into my bank account and I save that and my wage from work .

I get a alot of cash which I dont put into the bank I get paid from my job and tenant .

I dont have statements from cash jobs , so I'm thinking what can I do to put the money towards a mortgage it's around 30k . Can I give it to my parents so they can say it's a gift from them for a mortgage?

Or I can put 15k into bank and say I sold my car ?
Could do that a 2 or 3 times a year and if get asked just say I buy cars and do them up In my spar time.

colm_c

IMO, use the cash to furnish the house.

Banks are not stupid, if you suddenly come up with 30k, they will ask questions.

Better not to be lying about the source of funds.

Q&A

christy G wrote: »

Hi myself and parnter are saving for a mortgage, I rent out an apartment and get 1,200 a month payment from that goes into my bank account and I save that and my wage from work .

I get a alot of cash which I dont put into the bank I get paid from my job and tenant .

I dont have statements from cash jobs , so I'm thinking what can I do to put the money towards a mortgage it's around 30k . Can I give it to my parents so they can say it's a gift from them for a mortgage?

Or I can put 15k into bank and say I sold my car ?
Could do that a 2 or 3 times a year and if get asked just say I buy cars and do them up In my spar time.

I don't see the benefit to you in pretending cash in hand is anything other than that. Profit on car sales and gifts from parents are fine for making up your deposit. Once it's not a loan I don't think banks will care too much about the deposit (money laundering issues aside). However, dressing it up as one off payments will reduce the income multiple banks will use. Regular income is the part that they (should) care much more about.

Banks like to assess your ability to repay based on your regular income. Ideally they want payslips and rent books to prove this money is as it appears. That may consider some part of the cash in hand if you can prove its regular. If I were you I'd be lodging all this cash to an account and trying to document everything - a paper trail is your friend here. The more you can prove Is regular the larger the mortgage they will be willing to grant.

christy G

colm_c wrote: »

IMO, use the cash to furnish the house.

Banks are not stupid, if you suddenly come up with 30k, they will ask questions.

Better not to be lying about the source of funds.

The banks would see it as a gift from parents so they wouldn't know it was much money to start with. I put 1k to 1,500 a month straight into savings every month and that can be seen from my job salary and rent from tenant.

christy G

Q&A wrote: »

I don't see the benefit to you in pretending cash in hand is anything other than that. Profit on car sales and gifts from parents are fine for making up your deposit. Once it's not a loan I don't think banks will care too much about the deposit (money laundering issues aside). However, dressing it up as one off payments will reduce the income multiple banks will use. Regular income is the part that they (should) care much more about.

Banks like to assess your ability to repay based on your regular income. Ideally they want payslips and rent books to prove this money is as it appears. That may consider some part of the cash in hand if you can prove its regular. If I were you I'd be lodging all this cash to an account and trying to document everything - a paper trail is your friend here. The more you can prove Is regular the larger the mortgage they will be willing to grant.

Hi thanks that's great advice. Well the money would be a gift towards a mortgage , i dont think i will say i sold my car anyway wasnt my first plan .

I'm currently saving 1k to 1,500 a month from my job salary and rent from my tenant which goes straight into bank, do you think that is a good amount to save for a mortgage?
Does it make any difference if I save weekly or monthly to the bank?

Thanks in advance.

Q&A

christy G wrote: »

Hi thanks that's great advice. Well the money would be a gift towards a mortgage , i dont think i will say i sold my car anyway wasnt my first plan .

I'm currently saving 1k to 1,500 a month from my job salary and rent from my tenant which goes straight into bank, do you think that is a good amount to save for a mortgage?
Does it make any difference if I save weekly or monthly to the bank?

Thanks in advance.

Weekly/monthly won't matter bank will just want to see that it's somewhat regular. Your mortgage will more than likely be monthly so as long as it's no less than monthly you'll be fine.

Is 1-1.5k a good amount, it's a case of how long is a piece of string. Really depends on how much of a mortgage you're after.

Also If you're paying rent they'll factor that in as well. So it sounds like you're in a good position to
Prove you can make the repayments.

You mentioned you get rental income. The bank will take into account any outstanding mortgages on the property. This may lower what you can borrow. Also if you've had a mortgage before you may need 20% deposit (10% if you're a first time buyer).

Jim2007

christy G wrote: »

Or I can put 15k into bank and say I sold my car ?
Could do that a 2 or 3 times a year and if get asked just say I buy cars and do them up In my spar time.

And when they ask you to provide documentation to support your claim, in line with money laundering rules, you'll do what????

There is not a single trick you can think of that they have not seen before...

Falsifying anything in order to obtain a loan is technically fraud. And although I doubt the bank would bother, they are entitled to make a criminal complaint.

christy G

Jim2007 wrote: »

And when they ask you to provide documentation to support your claim, in line with money laundering rules, you'll do what????

There is not a single trick you can think of that they have not seen before...

Falsifying anything in order to obtain a loan is technically fraud. And although I doubt the bank would bother, they are entitled to make a criminal complaint.

Ok relax there jim was not a plan just a thought. I wont be doing that. Can just get a gift from parents

It you give the money to your parents to give to you they will be liable for tax (unless they just keep it in cash and don’t lodge it) so that’s not a good idea either is messing around pretending to be selling a car etc.

If you are building a house it’s easy just keep the cash and use it for paying people if you are buying then the best way is probably to save more of the official money you get from rent/salary and spend the cash on your day to day stuff. You could give your parents 6k per year tax free officially also which they could they gift back to you tax free. No option is straight forward really if you want to keep this cash under the table which I would imagine is your plan.

Bubbaclaus

You could also stop committing tax evasion. Just a thought.

Jim2007

christy G wrote: »

Ok relax there jim was not a plan just a thought. I wont be doing that. Can just get a gift from parents

I'm perfectly relaxed, it is you who are proposing rather foolishly in committing fraud and tax evasion....

Toots

christy G, please read the Charter before posting. Asking for advice around providing false information on a loan application is prohibited.

No Dishonest Dealings.
Don't ask how to get around repaying debts/defaulting/giving false information for loans etc - basically if it's not above board, and legal, it's not allowed. This includes advising posters to do it/how to do it.

Thread locked.