Kids disagreeing. Any ideas which was is right!

[gingerandproud4always]

I'm at a loss. My kids are in a bit of a disagreement and I'm being pulled in both directions.

Child A and child B. Similar ages/salary etc. Child A has a partner with a bad credit rating so when they bought their house, B lent them some money for the deposit and went on the mortgage. This was the only way A could buy their house.

B wanted to buy a house 3 years later, A sold house, gave B back the deposit (with no interest). A kept equity as had been paying the mortgage.
B was at a disadvantage as was no longer technically a first time buyer and missed out on all the relevant schemes.

5 years on they’ve both received a letter saying there was a refund due to them from the mortgage. They are both to receive cheques soon.
A thinks they’re entitled to the whole thing as they’d been paying the mortgage.
B thinks it should just be split and they keep their own cheques as it is legally half theirs.

What’s the Mumsnet opinion?

Poor B

Sounds like B has been walked over.

Why on earth didn’t B get part if the equity too?

Is A the difficult one who always gets their way? I’d be livid with A if they were my child.

A either pays B interest at market rate at the time for a mortgage for people with bad credit, or lets B keep the refund. I bet the interest would be much higher

@gingerandproud4always

It has since come to light that the refund was due to charges made for missed payments. So this could have had a negative impact on B's credit rating.

I think they've both had a unexpected windfall (under £400 in total) and should just keep their half each. B had been slightly disadvantaged but knew this when they decided to proceed. A hasn't been grateful enough in my opinion. All a mess and never going to be best of friends but hope we can move past this.

Thank you everyone. I think I may risk a strop and show A this.

If A was missing payments they’re a fool. B should keep all of it and A should be paying B at least market rate for interest.

@M4J4

B was at a disadvantage as was no longer technically a first time buyer and missed out on all the relevant schemes.

I was advised that if you sell your property, you effectively ARE a first time buyer when you buy another property later on. Is this not the case?

I've a Help to Buy ISA going right now even though we have a property.

@M4J4 no, afraid that if you’ve bought previously then you can’t be defined as a first time buyer as obviously not your first time.. if helpful from the FAQ page of help to buy www.helptobuy.gov.uk/help-to-buy-isa/faq/

“ What is the definition of a first time buyer?
A first time buyer is someone who does not own, and has never owned, a home anywhere in the UK or the world. A full definition of this can be found here.”

B is right and A is very entitled