One possible way to use your kid's savings and not get into the situation where they become subject to tax on "gifts" would be to get a solicitor to draw up a loan agreement between your kids and yourself.

I would think this could be done but I have no knowledge of the law on this so try a free consultation with a solicitor and just ask if it will work.

Hope this works for you.

Hi, I have recently started IT Contracting and like lots of other people am finding it very difficult to get a mortgage. I am moving house and only need a 20% mortgage - to secure the new house, our dream home, despite this being the same value as my current mortgage First Direct (current lender) wont let me have this as I am now contracting and the last mortgage was secured when i was a PAYE employee. I have a high equity level and have doubled my salary since starting contracting but tis doesnt seem to wash with them or any other lenders. I even tried my Dad as a guarantor but they werent interested in having my guarantor as he is over 60 years old.

I have invested heavily in savings accounts for my children over the last 10 years and they have inherited some money as well. As such they have enough money to cover the cost of us moving and buying the new house. Although using their money seems a bit "wrong" to me I have thought about it and the rates they are receiving are much lower than a mortgage rate so I could repay their accounts at a higher rate benefitting them. I have heard though that this would then count as gifts to my children and mean that they would then be subject to tax on their savings interest. Can anyone tell me if they have done anything similar and if so what implications I might have missed? Is it even legal for mt to to this? I have control over the childrens money so assume I am able to do it.