Parental Gift

Posted on 12 March 2011 by smith


Mother selling her house to move in with us, can she give us £100,000 to pay off our mortgage?

Your Mother can give you money to pay off your mortgage. There are a few considerations you need to look at or take advice on:

Does your mortgage have any early repayment charges (ERC)? These normally only apply during any initial discount or Fixed rate period, but check with your Lender. There is no point paying a 1, 2 or 3% fee if you come out of the ERC period in a short while.

You need to consider the Inheritance Tax implications of such a gift. The Solicitor handling the sale of your Mother's house will be able to give you advise on this.

Peter

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