Hey all I have a quick question for the more knowledgeable members of the the forums.
We will be coming to the end of our current fixed term with PTSB in September and are in the process of looking at our options moving forward, my parents have come forward with a proposal to “loan” us €100,000 to be paid back over the next 8ish years with the understanding that the repayments would be written off with the yearly tax free allowance of €12,000 they currently gift myself and my wife each year. This would be done to lower our remaining mortgage whilst also being tax efficient in their desire to gift their estate now as opposed to when they die.
My question on all of this is how would a bank view this in relation to mortgage repayment ability moving forward. Obviously it would leave us with a mortgage of €100k less but it would technically leave us with an additional loan to my parents that actually involves no repayments.
We will be coming to the end of our current fixed term with PTSB in September and are in the process of looking at our options moving forward, my parents have come forward with a proposal to “loan” us €100,000 to be paid back over the next 8ish years with the understanding that the repayments would be written off with the yearly tax free allowance of €12,000 they currently gift myself and my wife each year. This would be done to lower our remaining mortgage whilst also being tax efficient in their desire to gift their estate now as opposed to when they die.
My question on all of this is how would a bank view this in relation to mortgage repayment ability moving forward. Obviously it would leave us with a mortgage of €100k less but it would technically leave us with an additional loan to my parents that actually involves no repayments.