Mortgage plus cash to buy house

M

Marie_2019

Registered User
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4
Hi,

Was wondering if anyone can help with advice on my situation:

Myself and my boyfriend would like to buy a house. I went through bankruptcy a few years ago so I cannot go on the mortgage. He has got mortgage approval for 133k, the house we want to buy is 300k. My parents are willing to gift/loan the balance of 167k.

I understand that my parents can gift me an amount up to 310k tax free (which is not really useful in this scenario since i can't go on the mortgage) and that they can only gift him 16k tax free. Is there any other options so that we don't have to pay a huge amount of tax?

My mum tried to get a mortgage with my boyfriend but they refused it as it's not a mother & son relationship.

Any advice appreicated.
Thanks
 
Marie_2019 said:
I went through bankruptcy a few years ago so I cannot go on the mortgage.
Click to expand...

Who says?

When were you discharged?
How much are you earning now?

Bank of Ireland has given mortgages to discharged bankrupts.

Success! I got a mortgage 4 1/2 years after being declared bankrupt

So folks after over 2 years of applying, we got mortgage approval back in July and we'll finally be getting the keys to our new home next week. For the doubters out there (@Brendan Burgess being one - couldn't find the quote where we hadn't a hope of getting credit)........I'll be raising a...
www.askaboutmoney.com

Have you applied directly to all the banks? Try using a mortgage broker.

It is a very bad idea for your parents to give or lend your boyfriend money to buy a house in his name. If the relationship splits up, you will be out and they will not see the money again. Unless you can get the house into both your names, don't do it. Wait until your credit record is good enough for a mortgage.

Brendan
 
Alternatively, and it's messy...

Your parents could lend your boyfriend the €167k.
He could pay interest on it and there would be no tax consequences for him.
If they give him an interest-free loan, he would be subject to CAT on the imputed interest less the €3,000 annual exemption, so that would be very little.

Revenue wouldn't be interested in this transaction as long as it's genuine, and he repays the loan at some stage.

Brendan
 
The bank would be interested though! They would factor in the repayments and reduce the amount of loan approved if the money is not a gift.
 
Discharged in April 2018, I haven’t tried for a mortgage as I’m assuming I won’t get one as my credit rating is so bad - it’s still showing that I’m missing payments every month even though Ive gone through bankruptcy. Also I tried getting credit union loan of €1000 just to see & was refused.

My salary is 65k.

My parents solicitor mentions them putting a deed of charge on the house to protect them?

Regarding the loan, would the bank allow me to pay that part back if he was paying the mortgage part?

Thanks
 
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