Are there any rules against it? I see some inheritance coming down the line to me, that I didn’t work for. I don’t see why I deserve it more than anyone else.
A couple of my friends are struggling financially, and a bigger house / more luxuries is not going to make me happy if those around me aren’t happy and comfortable. I wouldn’t be able to sleep at night knowing this while I sit in a pile of cash.
Is it possible in the UK to (preferably anonymously) pay off some or all of someone else’s mortgage? Is this a thing people do?
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I doubt you’d be able to do this anonymously. The bank’s anti-money laundering 🚨 will be concerned for sure, especially if it’s a large balance.
I’m sure you can gift someone money, so they can pay it off.
Not sure of the legality around financial interest in the property, you might need to sign something that you have no interest in the property, post paying it off for them. Although, not sure exactly.
Theoretically yes, but you would need their account details and you would need to make a gift declaration so that they can prove it’s not taxable income. Anonymity would impossible due to money laundering considerations (on your side) and tax considerations (on theirs).
But I would suggest that if you have enough to pay off a mortgage, you have enough to pay for proper legal advice on the best way to do this.
So from what I understand by all means pay off their mortgage, I don’t think you can do it anonymously because of money laundering and you need to legally sign to say you are not having any claim over the house.
Be aware that if they are in a mortgage deal there will also be an early repayment charge from the lender which may bump the price up a fair bit.
I’d just like to say that you are incredibly generous and a good friend well done.
Also, if anyone wants to pay off my mortgage I would be very grateful!
Parents help children (the so-called bank of mum and dad), but it is done openly. As someone else has said, money laundering regulations mean there may be obstacles.
Could you talk to them?
Do you already have their bank account details? How honest are they? One time I got what seemed like a random amount deposited into my account, I wasn’t expecting it, didn’t know who it was from or whether it was meant for me or a mistake … So I went to my bank and asked if they could tell me and they told me the name on the account that deposited it. I didn’t want to spend it if I was going to have to give it back..
Yes you can pay off someones mortgage if you know there lender and mortgage number which will require abit of work to get from them in secret.
You can make payments anonymously.
However it’s best to seek professional advice first to make sure your money is going to be safe.
You Truly don’t know someones finances as most people keep it private.
There mortgage maybe have other assets or lenders attacted to it.
Also all lenders have there own policies so some may let you pay anonymously and some don’t.
Some require you to be a relative and some you must be a parent only.
The hassle and paperwork required afterwards again varys on lender some can just post it by mail other’s you must complete in person.
Now it’s easier to tell the person and you pay them the deposit and they pay it directly to there lender.
But who says yes to a gift like that.
Well done for such an awesome thing to write and caring about others we need more people like you 😀
Omg I wish someone would help me!! But aside from that I just want to say that you never know what is around the corner. You just might need it yourself one day! Maybe for medical treatment or a legal matter. I’ve had money and so many times I’ve wished I’d kept some for a rainy day! Too late for me but not for you. And how would you feel if you ever fell out? It happens.. your kindness is amazing by the way!!
The state will want another slice.
Why? Once IHT is paid there is no further tax to pay unless the money is in invested and becomes liable to CGT. Gifting or receiving a gift as money does affect tax position but could potentially affect means tested benefits like Universal Credit.
Don’t think anonymously.
First anti money laundering
I’m pretty sure you’d need to declare it as a gift, otherwise you could turn around and argue you had an interest in the property.
Most people have fixed rate mortgages and paying above a certain limit would trigger an early repayment charge, so you could actually make things difficult for them.
I seriously wouldn’t.
I was the same as you many years ago, and looking back, I know very few of the same people now.
It’s a very generous thought, but invest it for yourself, and perhaps give them a few quid from your investments.
> I see some inheritance coming down the line to me, that I didn’t work for. I don’t see why I deserve it more than anyone else.
And you can guarantee that at no point in your future you’ll have a need for that money?
> A couple of my friends are struggling financially,
How much of that is self inflicted? If you know they’re struggling but see them going on holiday, buying stuff off Amazon, going out on a weekend do they really deserve you paying their mortgage off? Surely all that’s doing is the equivalent of buying an alcoholic a beer?
There’s no legal reason you can’t, some lenders will question a transfer coming from a bank account in someone else’s name though. Easier to transfer it to them and have them pay their mortgage off.
Staying anonymous is hard, but the standard way would be to go through a lawyer who contacts the individuals and tells them that an anonymous benefactor wanted to pay off their mortgage and arranges the details.