House contents paid for out of mortgage?

johnjoesim

Hi All

We went sale agreed on a house some time ago and did a deal with the vendor that we would purchase the contents of the house too. We then went and sought a mortgage for the total price. Contracts have now issued and the cost of the contents has been carved out of the price itself which our solicitor advises is advantageous for both the seller and ourselves from a cgt and stamp duty perspective. She advised we’d need to check with our bank in terms of it being ok that the mortgage is going to cover the contents too. I checked with our rep in the bank (BoI) and he has advised that he thinks its fine but just want to see if anyone has experience of this so that we dont get caught out later down the line last minute - we wouldnt be able to afford to purchase the contents if we had to pay for it separately.

Thanks

You should be fine, I encountered similar when buying the show house but chose not to include the contents in the mortgage - paid that portion with cash - as I saw no advantages in paying for the couch over 29 years. Bank or solicitor had no issue with it though.

Henry Ford III

No CGT on your PPR.