Equity release taking time, can I put my own money in the interim?

So I'm in the process of buying an IP at the moment. I have applied for two loans - equity release from my PPOR for the deposit 20% and an interest only loan for the remainder 80%.

Equity release from PPOR for the deposit will take 4-5 weeks from today, and I would like to buy it sooner as I have a property in mind.

The interest only loan for the 80% has been approved.

Assuming I pay the 20% deposit with my own money to get the property sooner, can I take out my money and replace the deposit with the equity release money later on to make the equity release money tax deductible?

 

No.
I have tax tip on this

 

No. You cant borrow money from yourself so later cant "refinance" this. The new loan would not ever be deductible. However if a kind parent (example) lends you the money temporarily and you later repay them (and can demonstrate this in your bank transations) and there is a written agreement for your parents to make this temporary loan it may work.

 

There are ways around it though

 

For a fee Terry will allow you to send the $$$ to him and he will lend it to you and provide a loan agreement. Then when your bank loan comes through you can repay him using the loan and he will send you the cash...Maybe.... I know this guy in Nigerea who can help. He is very kind and has offerred me a big share of his cousins inheritance.

This is why I used the example of a parent. You want someone trusted who you can gift $$$ to and know they will fulfil the arrangements.

 

You can do this by lending the cash to an associated trust or company. Make sure the documents are clear showing what you are doing. It is easy to mess it up.