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AIBU?

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Original poster

AIBU to consider borrowing a house deposit from a friend temporarily?

88 replies

Borrowingfromafriend · 08/04/2026 10:51

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.

OP posts:
PenelopeAsks · 08/04/2026 11:11

I don’t think a standard mortgage company would accept the risk, but I might be wrong. You need a damn fine mortgage broker to guide you through this.

Original poster
Borrowingfromafriend · 08/04/2026 11:11

titchy · 08/04/2026 11:06

You’d need a specialist broker - effectively all your purchase would be collateral. Couldn’t you remortgage the property you intend to sell?

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

OP posts:
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.

Original poster
Borrowingfromafriend · 08/04/2026 11:10

WormHoleInSpace · 08/04/2026 11:04

What will you do if your property doesn't sell in the time frame you agreed to pay back the loan , or can't reach its estimated value ?

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

OP posts:
Itsmetheflamingo · 08/04/2026 11:07

Batties · 08/04/2026 11:02

I’m not entirely sure that it would be legal.

How could it possibly be illegal? A mortgage company might not like it but that doesn’t make it against the law.

OP I’m not sure a mortgage company would be keen as it looks more like money laundering than most gifted deposits do. I would imagine most mortgage lenders would think it not worth the hassle

titchy · 08/04/2026 11:06

You’d need a specialist broker - effectively all your purchase would be collateral. Couldn’t you remortgage the property you intend to sell?

Trusttheawesome · 08/04/2026 11:05

Your mortgage company would prefer that it be legally written in as a gift, but people do loan money so you’d just need to get it all written up.

You could also take a bridging loan, but if your friend is offering without any interest then it will save you money to go with it.

WormHoleInSpace · 08/04/2026 11:04

What will you do if your property doesn't sell in the time frame you agreed to pay back the loan , or can't reach its estimated value ?

takealettermsjones · 08/04/2026 11:04

You need a specialist mortgage broker I think.

Endofyear · 08/04/2026 11:03

I think it's exceptionally kind of your friend to offer and if you're sure you can repay her then I would gratefully accept. But I would go to a solicitor and draw up a loan agreement with a set date of when the money will be repaid. Borrowing money from friends can be tricky so it's better to have it all written out and signed.

Batties · 08/04/2026 11:02

I’m not entirely sure that it would be legal.

Original poster
Borrowingfromafriend · 08/04/2026 11:01

TheTulipsAreOut · 08/04/2026 10:56

Why not? She's offered (you didn't ask) & it's loose change to her. If I were her I'd be frustrated if you didn't!

just for clarification I'm not the friend 🤣🤣

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!

OP posts:
TheTulipsAreOut · 08/04/2026 10:56

Why not? She's offered (you didn't ask) & it's loose change to her. If I were her I'd be frustrated if you didn't!

just for clarification I'm not the friend 🤣🤣

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