Around about a month ago my wife and I decided to gift our daughter 40k ( with no requirement to pay it back) to help her buy her first home. She successfully applied for a mortgage and completed the required forms. This included ticking the box stating that there would be no one else living with her.
Since then my daughter has suggested that we move from our rented accommodation (which is quite expensive) to live with her rent free. We would help out with supporting heating bills and food but not contribute to the mortgage payment.
Both my wife and I thought this would be quite straight forward and could not see there being any problem, we would be helping each other out but at the same time it would be her property and we would not want to have any future claim on the property.
We have recently read that this could be in fact illegal and the mortgage provider tend to frown on family moving into a property together. In fact it states in some cases that this could be fraud and the lender could request full payment of the remainder of the mortgage which my daughter would not be able to do.
We are now very worried about any proposed move but at the same time cannot believe we cannot live as a family together. Are you able to offer any advice, thanks Paul
Technically this will feel like it is a breach of the agreed mortgage conditions, but you can only really ask the lender involved.
I suspect every lender will deal with this differently, although with such a recent gift I imagine they will find it difficult to accept this is a complete change of circumstances from just one month ago..
Best of luck