Page 3 | AIBU to consider borrowing a house deposit from a friend temporarily?

Borrowingfromafriend · 2026-04-08T09:51:31+00:00

We’re looking to buy a property and need £200k for a deposit. I have quite a bit more than this in equity in another property however, this will take a while to be ‘freed’ up and I need to move ASAP if I want this property. A friend has suggested borrowing the £200k from her (she has a net worth of £50m+ just to put in perspective - this isn’t her entire life savings or anything). How would we go about this for a mortgage? Would it even be feasible? I would pay her back in full as soon as the other property sells.

Riapia · 08/04/2026 13:16

If in doubt get it in writing.
Applies to both parties.

Mum5net · 08/04/2026 13:16

Can she buy the house jointly with you? And you buy her out further down the line ?

Runnermumof2 · 08/04/2026 13:14

titchy · 08/04/2026 13:12

How? You could remortgage in less than a week. You wouldn’t be anywhere near being able to exchange on a purchase in that time.

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Less than a week ? Where ? I remortgaged in March and it took 2 months

Runnermumof2 · 08/04/2026 13:13

I'll take it ! But seriously I don't think this is allowed legally. It would have to be declared as a non returnable gift for the mortgage purposes and that puts you in all sorts of murky waters.

titchy · 08/04/2026 13:12

Borrowingfromafriend · 08/04/2026 11:11

Yes but the money is needed quicker than this would allow.

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How? You could remortgage in less than a week. You wouldn’t be anywhere near being able to exchange on a purchase in that time.

Coffeeandbooks88 · 08/04/2026 13:03

How are you paying it back?

Catza · 08/04/2026 12:55

Borrowingfromafriend · 08/04/2026 11:01

I’m planning on discussing with a mortgage advisor this week.
Does anyone know if this would be accepted by the bank? I’m not sure how they feel about gifted deposits etc!

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It's not a gift. It's a loan and will be considered as such for the purpose of your mortgage application.
Gifts are no issue. Loans will be a different matter as it will affect your affordability assessment.

BudgetBuster · 08/04/2026 12:39

Borrowingfromafriend · 08/04/2026 12:31

The loan from a friend is much cheaper and easier than securing a bridging loan.

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It isn't easier. A bank will go "RED FLAG RED FLAG RED FLAG"

Legoninjago1 · 08/04/2026 12:37

If it was a loan she’d need to sign deed of subordination. If a gift then a declaration. The lender would want to ensure she has no claim on the property. Some may not like it as it could appear you have no ‘skin in the game’ and could just walk away. Some lenders would only accept your deposit being gifted by immediate family. A bridging lender might take the equity in the property you’re selling and bridge your purchase that way. But best to speak to the lenders / brokers direct.

Doseofreality · 08/04/2026 12:34

If your friend has a Net Worth of £50 million, does she not have access to financial advisors who can tell her if that is feasible for you?

Original poster

Borrowingfromafriend · 08/04/2026 12:32

EdinaMonsoonsWardrobe · 08/04/2026 11:47

Ooo is she a celebrity?

No - she just owned and sold an incredibly successful business!

OP posts:

Original poster

Borrowingfromafriend · 08/04/2026 12:31

BudgetBuster · 08/04/2026 11:40

Then just get a bridging loan from a reputable bank like a normal person.

Borrowing £200k from a rich friend screams of fraud.

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The loan from a friend is much cheaper and easier than securing a bridging loan.

OP posts:

Original poster

Borrowingfromafriend · 08/04/2026 12:30

BudgetBuster · 08/04/2026 12:26

The fact that you need £200k quicker than just getting a bridging loan... which could take a matter of days... again screams fraud 🙄

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I said that it’s quicker than taking out equity from another property.

OP posts:

BudgetBuster · 08/04/2026 12:26

Borrowingfromafriend · 08/04/2026 11:11

Yes but the money is needed quicker than this would allow.

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The fact that you need £200k quicker than just getting a bridging loan... which could take a matter of days... again screams fraud 🙄

Tryingtokeepgoing · 08/04/2026 12:25

Itsmetheflamingo · 08/04/2026 12:10

This would take absolutely ages and why would the existing mortgage holder on the property agree a change to another party? It would be far quicker to do the bridging loan, which OP has said will take too long

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I mention it a a possible solution as, back in the day, it's how I used to extract equity to fund the purchase of additional buy to let properties, except rather than use a friend for the loan I used a bank. Either way, it can be done quickly with a good solicitor. At a practical level it's the same as a bridging loan as both are secured on a property so require a lender's consent, except a bridging loan would be more expensive :)

Itsmetheflamingo · 08/04/2026 12:10

Tryingtokeepgoing · 08/04/2026 12:00

The simplest thing to do is probably borrow the money from your friend, and have it secured on the existing property. Then let the mortgage company for the new purchase know that the source of the deposit was equity in the other property. I think they are more likely to be happy with that than having their mortgage and the loan from the friend secured on the new property. At one level there is probably no need for the £200k loan from your friend to be secured on anything, but I think it'll make the paper trail more robust. Just my thoughts though :)

This would take absolutely ages and why would the existing mortgage holder on the property agree a change to another party? It would be far quicker to do the bridging loan, which OP has said will take too long

PermanentTemporary · 08/04/2026 12:07

What @ComtesseDeSpair said. IME it needs to be documented in writing as a gift from her to be accepted as funding for this transaction. An agreement to repay/give it back would have to be verbal and informal. I think you or she would probably also need to be able to show evidence of where the £200k came from, which bank account etc. Only she knows if this would be acceptable to her - she’d have to trust you a lot to do this. Tbh if she were my friend I’d advise her not to do it. My mother did this for me (not £200k) and that’s the kind of level of trust it would have to be. I think if you can’t buy this place, you can’t and them’s the breaks.

Bjorkdidit · 08/04/2026 12:02

Presumably you're close/long term friends, rather than someone you chat to at the school gate occasionally?

She'll need to declare it as a gift, but she may feel it's worth the risk and given her extreme wealth, it's not going to be a disaster for her if you don't repay her when you sell your current home. Or gift her the same amount of money in the future, for those worried about this being somehow fraudulent.

Don't forget to account for the extra stamp duty when doing your sums, although you'll be able to reclaim this when you sell your current home (there might be a time limit, 3 years rings a bell).

Tryingtokeepgoing · 08/04/2026 12:00

The simplest thing to do is probably borrow the money from your friend, and have it secured on the existing property. Then let the mortgage company for the new purchase know that the source of the deposit was equity in the other property. I think they are more likely to be happy with that than having their mortgage and the loan from the friend secured on the new property. At one level there is probably no need for the £200k loan from your friend to be secured on anything, but I think it'll make the paper trail more robust. Just my thoughts though :)

Itsmetheflamingo · 08/04/2026 12:00

I don’t think a “good” or specialist mortgage advisor will be any use. This isn’t a complex situation and they can’t present it as something it’s not.

SpiceGirlsNeedAComeBack · 08/04/2026 11:55

Nope, you need a bridging loan. They won’t accept 200k loan from a friend, it just screams fraud unfortunately.

EdinaMonsoonsWardrobe · 08/04/2026 11:47

Ooo is she a celebrity?

Changingplace · 08/04/2026 11:44

ComtesseDeSpair · 08/04/2026 11:11

Lenders will require your friend to make a declaration that it’s a gift not a loan, and if it is a loan, the majority won’t accept it as a source of deposit. Even if your friend was prepared to make a fraudulent declaration about it being a gift, many lenders also don’t accept gifted deposits from friends, only partners and immediate relatives.

Absolutely this.

OP you need a bridging loan, mortgage companies won’t accept a £200k loan from a friend for all these reasons.

BudgetBuster · 08/04/2026 11:40

Borrowingfromafriend · 08/04/2026 11:10

I have £450k equity in another property. So there’s no issue with not being able to repay.

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Then just get a bridging loan from a reputable bank like a normal person.

Borrowing £200k from a rich friend screams of fraud.

TheTulipsAreOut · 08/04/2026 11:35

Borrowingfromafriend · 08/04/2026 11:01

I’m planning on discussing with a mortgage advisor this week.
Does anyone know if this would be accepted by the bank? I’m not sure how they feel about gifted deposits etc!

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see how you get on with the mortgage advisor, but you may need to try others.

you'll be able to do it, but you might need a specialist, rather than run of the mill.