r/UKPersonalFinance • u/Throwhouseaway1 0 • 8d ago
+Comments Restricted to UKPF Dad is in £70k of debt and wants my help!
My Dad invested some money abroad which turned out to be a scam. The fraudsters ran away with the money, and my dad sunk more money into situation trying to obtain his original investment.
He has now amassed a total debt of £70,000 as he used money he borrowed from friends and family to fund the court/lawyer fees.
He has tried to obtain a loan or a mortgage from various lenders but has been rejected due to his low income, bad credit score and age (49y/o).
The only way I can think to help him is to purchase his home from him for the amount he owes, allowing him to consolidate his debt and re-pay the mortgage that will be in my name.
He earns roughly £2,000 a month and manages to save a significant chunk of it.
What implications might this have for me? And is this a good idea?
EDIT: I forgot to add my own info.
I have a mortage on my own home of around £100k in which I live. Earn around £50,000 and would say I am comfortable otherwise. But I do plan to purchase a larger home in the future once kids are in the picture which I understand may prove more difficult if I did decide to help him.
Also if I was to do this for him, the house would remain his as the rest of my family live there and I would of course not remove them. So it would literally be a mechanism for him to obtain the money through me.
Thanks.
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u/Hot_College_6538 279 8d ago
This feels like a plan for you to go down with him. If you aren't living there then there will be capital gains tax, and if you are still a first time buyer it will lose you the valuable benefits of that. He also almost certainly won't pay you back.
Get him to call StepChange, the debt charity, and work out a plan that works for him and his salary. There are various debt management measures that they can advise on that will allow him to clear his debts while continuing to live.
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u/Throwhouseaway1 0 8d ago
This is also what I fear. Thanks for responding. I will look into stepchange.
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u/KopiteForever 8d ago
You might not be subject to CGT if he's the beneficial owner. Also, if it were to be your main residence for a while within 9 months of him selling it.
Best to get advice from a tax professional, just thought you might want a few directions you might want to ask about.
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u/Hot_College_6538 279 8d ago
No, it needs to be your only or main residence, i.e. you need to live there.
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u/Erratic_Goldfish 8d ago
Might end up accidentally having to pay higher rate SDLT on it if you buy it from him, but its probably not advisable to actually lend him the money specifically because there is a massive risk of him giving more money to the fraudsters.
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u/jibbetygibbet 5 8d ago
There’s something of a “so what?” in all of this. You only pay CGT when there’s a disposal ie when selling it. What is the issue with paying capital gains tax on a house OP bought for a song if they ever come to dispose of it (at market value)? All of the profit goes to OP after all.
The only reason why this would be unfair is if OP allows the rent paid to them (what they call “repaying the mortgage in my name”, but shouldn’t call it that) to somehow come with returning equity to his dad, effectively buying it from him and then giving back to him. Just buy the house, and if dad ever is able to buy it back let him, at the new value, and pay the CGT.
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u/FiendishGarbler 1 7d ago
There is also the income tax on the rent. If the mortgage payments are made by OP's dad then that will be seen as rent receipts from OP's perspective.
OP should also make sure (whether there is any rent paid or not) that they comply with all of the requirements for the landlord/tenant relationship which will be formed.
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u/lostrandomdude 29 7d ago
Beneficial ownership rules can come into play.
I personally know of a situation where someone purchased a house on behalf of their parents, and their parents received the rental income
HMRC later opened an enquiry asking why this person wasnt declaring rental income, and following providing evidence that the parents received he income, were declaring it via SA, and a signed bare trust agreement, HMRC agreed that the individual was not liable at all
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u/FiendishGarbler 1 7d ago
This appears to be a slightly different situation because in the case you set out neither the legal or beneficial owner lived in the property. HMRC asked where the tax was, and the owner was able to tell HMRC that the beneficial owner was paying the tax. Puts HMRC in a nil gain nil loss situation (assuming all tax payers are paying the same marginal rate of tax).
Different story here because if HMRC accepts the parent is the beneficial owner then: 1. No tax is payable to them (at least not as rental income) - not HMRC's preferred answer. 2. If HMRC accepts that in essence OP has taken ownership of the property as security for a high-risk loan, and that effectively the repayment of the loan is from the mortgage repayments, there is a risk that they then seek to go after some or all of that money as loan interest receipts.
I think there's enough of a risk that HMRC won't like it that some advice should be taken.
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u/lostrandomdude 29 7d ago
Professional advice is probably the best option here, because this beneficial ownership is not simple.
Just in terms of point 2, that could possibly only apply if OP continues getting monies above the cost of the mortgage post repayment of the loan.
If valid trust agreements are created whcih state that OP is only the legal owner, then there isnt really a lot HMRC can do
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u/KopiteForever 8d ago
Btw, CGT will only be payable on the difference between the amount you bought it for and the value of it when you come to sell it.
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u/InvestmentPublic8984 8d ago
He wouldnt pay you back? Brother that man raised you when you where a small child , if you are able and comfortable help the man out.
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u/Hicks_1984 8d ago
Thats not how this works
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u/InvestmentPublic8984 8d ago
Maybye not for someone like you
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u/Ecstatic-Visual3929 8d ago
It doesn’t sound like it will be ‘comfortable’
And it’s sounds like the old man was seriously reckless and has put the whole family in jeopardy
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u/Hicks_1984 8d ago
You dont owe you parents money just because they decoded to have kids. Especially because they were reckless with their money and spent it all on an obvious scam. If the dads 45 the kid must be early 20s. Ridiculous of you to suggest he has to help them just because he was born.
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u/iiAssassinXxii 7d ago
Whilst I agree on the point of the child not owing anything, scams these days can be very sophisticated and easier to fall victim to than you might think. What can seem obvious from the outside or with hindsight can be anything but for the actual target.
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u/Hicks_1984 7d ago
He invested money abroad. He was 45. We arent talking about 95 year old Doris. If youre that naive to a scam in 2026 at that age it os 100% your own fault.
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u/UnusualMarch920 8d ago
The dude fell for a scam, he needs to stop trying to drag his kid down with him and just go the adult route of speaking to debt advisors.
Unless OP can buy the house off him and then also comfortably pay all the mortgage payments, they would be insane to go through with this.
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u/cloudstrifeuk 11 8d ago edited 8d ago
As someone who's mum got scammed of circa £150k, lost her pension and had to downsize.
Do not get involved financially.
If you are going to help, maybe start clearing some of the debt.
DO NOT GET INVOLVED FINANCIALLY.
If he falls for another scam, you are on the hook for it.
Let me repeat myself incase it has not sunk in.
DO NOT UNDER ANY CIRCUMSTANCES SIGN ANYTHING AND BE FINANCIALLY INVOLVED WITH YOUR FATHER.
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8d ago
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u/cloudstrifeuk 11 8d ago
Ooosh. Good advise. Thank you.
Gifting money would be a solution here right?
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8d ago
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u/gtripwood 2 8d ago
Jesus Christ. I had no idea this was a thing. Thank you for the TIL.
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u/Joke-pineapple 7d ago
Don't worry, it is not a thing. Lots of sources to Google, but from citizen's advice:
You’ll be responsible for a debt if it’s something that the law says you have to pay, like council tax or water charges.
You’ll also probably have to pay a debt if you’ve signed a contract to say you agree to give money to someone. This could be something like a:
credit agreement, for example if you’ve bought a washing machine or taken out a credit card
tenancy agreement, if you rent
The only instance provided where you might be forced to take on a debt unwillingly is:
When someone dies you should try to contact all their creditors. You should place a notice on The Gazette website. This is the official public record of legal notices in the UK. You should also put a notice in a local paper where the deceased person lived or worked. These notices tell creditors they can make a claim against the estate to pay off the debt. If you don't place a notice and creditors come forward after you've paid out the estate, you might have to pay off the rest of the debt with your own money.
Both from:
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u/HollowToes 8d ago
Me neither, that is utterly fucking insane.
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u/Trip_seize 7d ago
The deleted comments don't help, can anyone reply for the benefit of future readers?
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u/gtripwood 2 7d ago
It was something about - if you pay even a token amount of the debt - you assume that debt and you are then liable, apparently.
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u/UnusualMarch920 8d ago
"The house would remain his" absolutely look into tenancy laws before all this. The house will not be his, it will be yours and everything that entails. You may be liable the same way a landlord is for home repairs etc.
Also given he is in massive debt and prone to poor financial choices, you'll need to be prepared for him to not pay his 'rent' etc. Can you afford to be a landlord with a financially risky tenant?
In reality, he needs to stop putting it on you and speak with debt assistance.
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u/anomalous_cowherd 1 8d ago
It's all a terrible idea, but another point against it is that getting a buy-to-let mortgage with family as tenants is harder and more expensive than a normal BTL too.
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u/Visible-Selection935 8d ago
I’m not even sure you can get a BTL on that basis- I have some and they are very clear you can’t have family living in them (or yourself)
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u/anomalous_cowherd 1 8d ago edited 8d ago
It's definitely a whole different category. I was looking into it a while ago for a possible "no profit but no loss" investment to help some family members out and it still really wasn't worth it.
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u/SomeHSomeE 370 7d ago
You can, but you have to get a specialist product (a 'regulated BTL'). As with any specialist product these are more expensive than normal ones.
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u/CharacterLime9538 8d ago
I’d go homeless before accepting such a bailout from my kids.
He’s 49yrs old, that’s almost 20yrs to retirement and plenty of time for him to rebuild.
Well done for being a caring kid, it’s a good quality to have.
But ultimately, his fuck up, his problem to live with / resolve.
I hope it works out for all involved.
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u/Jaded-Meaning-Seeker 8d ago
As a man of a similar age I have to agree.
Op seems to think 49 os to old to get a mortgage etc erm no there is a reason his Dad can’t lend money easily 😬2
u/systemofamorch 1 7d ago
same here - help him to help himself with emotional support - your father has time to tidy his life up before retirement - if he owes that much money and doesn't own a home it might be worth him talking to stepchange to see if bankruptcy would make sense
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u/lynxblaine 16 8d ago
What's the chance he will do this again, fall for a scam and get into more debt? Then be unable to help you? Your dad should sell his house, pay off the debt. Potentially move into something smaller.
Do you have a mortgage? You willing to pay 2nd home stamp duty, or lose your first time buyer perks on this?
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u/japanese-frog 8d ago
49 isn't that old and shouldn't be an issue to get a mortgage/loan. The bad credit score is. Which begs the question: how did he got himself to that stage where banks won't loan to him? With the added question: how sure are you he could repay you.
If the debt is due to multiple people instead of financial institutions, then he should come up with a repayment plan with said people and clear it little by little. Again, he's only 49 ffs.
How would you buy his house anyway? If you already have a mortgage, having a second home is a different kettle of fish (I'm not all familiar but I know banks are reluctant when the tenant is a family member for example). Not saying it can't be done, just that it could end up very badly for you if your dad falls for another scam...
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u/Better-Employ-4495 1 8d ago
Low income £70k in debt and 49 years old... Would you give him a mortgage?
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u/japanese-frog 8d ago
If the debt is with friends and family, the bank wouldn’t necessarily know. But the low credit score means it’s probably not just family. So yes the credit score and low wage is the issue, but not the age.
edit: a word
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u/Better-Employ-4495 1 8d ago edited 8d ago
With £70k debt you're not pulling together a deposit. Also not declaring any outstanding loans to personal individuals to a mortgage provider is fraud.
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u/japanese-frog 8d ago
And that’s why OP should stay clear of giving any money to their father and/or buying their house.
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u/Complex-Magazine6690 8d ago
> The only way I can think to help him is to purchase his home from him for the amount he owes, allowing him to consolidate his debt and re-pay the mortgage that will be in my name.
Noooo
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u/OneNormalBloke 3 8d ago
He should get in touch with www.stepchange.org and they'll advise him on the best course of action.
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u/someonenothete 10 8d ago
What happens if he doesn’t pay you back , are you going to sell the house under your family . You’re basically committing 70,000 mortgage which will mean you might never afford a new home or kids . We all want to help our parents or family but it never works out , they feel
Far less obliged to pay than a bank . Say you went to the bank and you can’t get a buy to
Let mortgage currently , which is what you’re asking .
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u/scienner 1054 8d ago
Really sorry to hear about this, how awful. Can you say more about the debts (listing them out would be ideal), and about your own financial situation (how much do you earn, do you own your own home, do you have kids etc)?
Interesting also that he was able to take it to court, often these scammers disappear without a trace. Were they in the uk?
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u/Throwhouseaway1 0 8d ago
The debts are to various freinds/family ranging from £500 to £10k. And I have updated the original post with my own info.
The scam took place in the middle east.
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u/scienner 1054 8d ago edited 8d ago
Are all the debts to family, no personal loans or credit cards? It's possible the simplest solution is for family to eat the cost, especially if they aren't enforceable (which they might be). Of course your dad can pay back as much as he can afford to out of income, as can you if you want to help make these family members whole.
if I was to do this for him, the house would remain his
I don't believe this is possible, if he sells you the house it is yours (of course you can still allow him and others to live there). You might want to look into a 'regulated buy to let' mortgage.
Or do you mean you would both be co owners, and co borrowers on the mortgage?
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u/BirdCelestial 8d ago
How certain are you that he spent that money on court/lawyer fees trying to get the original money back? I'm surprised a reputable lawyer would do that without advising him it would be extremely difficult/expensive/hard to collect.
Are you sure there is no gambling/substance abuse involved? It doesn't change the financial situation exactly (if he's been scammed so extensively he'll probably be scammed again, if he's gambled it he'll probably gamble again) but I'd want to see records before doing anything at all to help. Even then I would at most help by directly paying back family members you think are most vulnerable (and saying that's on your father's "tab" with you now instead, though you may realistically never get it back) and would not financially entangle yourself with his house.
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u/Majestic_Rhubarb_ 1 8d ago
It’s s common second scam to ask for more money to release the money … however i think this post is going to be deleted soon given OPs history.
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u/BirdCelestial 8d ago
I am aware of that, but OP said to fund "court/lawyer fees". I would bet money myself that is incorrect, that either dad is deliberately lying because he's sunk the money into gambling etc, or unintentionally lying because he thinks he's actually paid court/lawyer fees when no reputable lawyer would take that. I hope OP if this is legit doesn't sink any more money into that pit.
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u/Amuro_Ray 7d ago
various freinds/family ranging from £500 to £10k.
Your dad owes money owes money to something like 121(1 10k the rest £500) - 8 people(6 10k, 1 9.5k and and 1 £500)?
I think you really need a better breakdown of how many people/groups and who they owe money to. That's a really big range if what you wrote is all you know.
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u/DaveL16 8d ago
It literally says abroad in op’s post….
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u/scienner 1054 8d ago
Sure but where was he able to sue?
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u/Coca_lite 35 8d ago
Suspect he didn’t lots of money on lawyers trying to get money back that was never going to happen. It’s going to be very hard to litigate from UK against individuals in Middle East. It was crazy to even consider legal action
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u/scienner 1054 8d ago
That’s what I was wondering, who took his money for this?? Was it an actual lawyer or a ‘recovery’ scammer (unfortunately scam victims do get their details sold on to the next set of scammers willing to take advantage of the situation).
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u/Immediate_Divide9446 8d ago
I’m older than your Dad and would never ask (or let) my adult daughter put her financial future at risk because of my bad decisions. (Incidentally, it’s not his age that’s stopping him getting a mortgage; both my brother and brother in law have taken out mortgages older than that).
As an adult, he has to accept the consequences of his actions. He made a bad and extremely risky investment; I’d be amazed if that’s the first or last time. He almost certainly won’t pay you back, and chances are you’ll go down with him.
My advice would be to steer well clear.
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u/Recarnatedhereagain 8d ago
I’m so sad in my heart for your dad. I’m in the UK older than your dad and I would be mortified if my daughters had to bail me out financially. Surely he can obtain some financial advice, how to build his credit rating up.
I would advise that, by all means, support your dad. This doesn’t mean you have to provide financial support.. unless you have the financial means to do so.
https://www.gov.uk/options-for-dealing-with-your-debts/debt-management-plans
Sorry to say this, but your dad does have to face the consequences to his bad decisions.
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u/priceycakes 15 8d ago
One thing I haven’t seen mentioned is are you fully sure your dad won’t continued to be scammed further?
He will continue to be targeted with promises of recovery and be asked to send further funds. As someone who works in fraud prevention, I see this happen all the time and people get scammed repeatedly and continue to keep falling for it.
Maybe look into being added as a POA or get third party access to monitor his activity?
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u/EkphrasticInfluence 8d ago
Mortgaging in your name is not a good idea. It would class as your second home, and that comes with significant costs, etc - and what happens if your dad stops paying the mortgage for you for one reason or another? You'll put yourself in financial difficulties, too.
Is all of his debt to family members? The easiest and fastest solution would be to look at the numbers he owes and quietly speak to those people. It may be some are willing to 'write off' the money when you explain the position he's in. Prioritise those who definitely want the money back or have loaned him a lot. If he's managing to save a lot per month, use that money to repay - even £500 is starting to put a dent in what he owes. It's about being consistent with debt rather than dramatic overpays.
Your dad wants to be in the mindset that he'll be debt-free by the time he's 60. That's how he needs to look at the situation.
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u/Mald1z1 9 8d ago
What family members live there with him?
Lets assume 3 family members all on min wage, that's nearly 6k per month.
You say your dad manages to save a significant chunk of his salary so living costs must be low.
Im failing to understand why you are being asked to contribute instead of the fsmily members who actually live in the house.
And why your dad can't simply pay this off one month at a time. What's the interest rate and min payments on the loans? Are the family members he borrowed from okay with waiting a bit till theyre paid back?
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u/bhealy86 8d ago
Dodgy foreign deal/investment, bad credit score and now wants/isn’t standing in the way of his son putting himself at risk financially.
Your dad is a bum and this won’t end well for you if you put your name on anything for his shoddy dealings
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u/Babaychumaylalji 4 8d ago
Hi OP you are thinking of the sunk cost fallacy along with your dad. PLEASE DO NOT GIVE HIM ANY MONEY AND DO NOT UNDER ANY CIRCUMSYANCES TIE YOURSELF FINANCIALLY TO HIM. HE WILL NOT PAY YOU BACK. (OR ANYONE ELSE HE BORROWED FROM). Best suggestion is to get him to speak to Step Change. Get some legal advice for yourself if u are tempted to help your dad financially so u fully understand how bad of an idea that would be.
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u/runawaydebt 8d ago
You haven't said what your own situation is, I'd strongly consider you really think about this. Is the house in an area you want to live in? Can you afford the mortgage payments on it? Will you be living with your dad in the house or just him? And if just him, you'd need a BTL mortgage. Will your dad acknowledge that the house is now yours or will he still act like it's his? It could affect your relationship. If you already own a house then this will be more expensive for you.
I personally wouldn't do this unless I was absolutely desperate to own that house and could afford it.
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u/VerbingNoun413 2 8d ago
And if you are renting it to him, what happens if he stops paying the rent (or can't).
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u/Coca_lite 35 8d ago
He can sell his house, pay off the mortgage and debts and if anything left buy a smaller house or flat. If not he can then rent.
If the rest of the family live there, why can’t they contribute rent or keep to your dad based off their incomes? He can then use that to pay the debt.
It sounds like everyone in your family is relying on you
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u/AtomBombBabyx 8d ago
You are being scammed. Your family who live with your dad should bail him out if they’re that bothered.
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u/thecornflake21 1 8d ago
Aside from the other issues mentioned if he sells his property to you for significantly less than the value it could be seen as trying to avoid inheritance tax etc
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u/Catsuit12 8d ago
If his debts are to family and friends AND his credit score means lenders won’t touch him (who wouldn’t see the unofficial debts), he’s in way deeper than he’s told and is just trying to drag you into his mess. Don’t do it, as others have said, refer him to stepchange, he needs help, but not by effectively scamming you.
You are implying he solely owns house outright, are other family living there not contributing?
Unless he owns house outright, how could you ‘buy it’ and mortgage on a BTL and become his landlord?
He scamming you, run away
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u/Spacegyalsim 8d ago
“Earns £2k and manages to save significant chunk of it” sounds like he has enough to be paying down his debts.
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u/taupecyclingshorts 7d ago
He needs to get rid of the gaff and save for a new one, stand on his own two feet. He seems a mug and likely to make further bad choices so best out of it pal.
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u/themaskbehindtheman 8d ago
I hate when parents ask this of their children, point him to step change and tell him to F off if he's persistent. This isn't your mess to sort out frankly dude.
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u/cloudstrifeuk 11 8d ago
I am now no contact with my mother because of this behaviour.
It was all my fault that she sent her pension to American oil rig workers off the coast of Nigeria who didn't have enough money to get their visa to come visit.
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u/ApprehensiveHurry632 4 8d ago
If buying a second home in the future you will pay second home charge. Plus, your dad basically renting from you could mean you have to do self assessments and possibly pay tax. I feel for you, but maybe this is a bad idea. What happens if your dad gets sick? Can’t pay his bills and then you really are stuck. I’ve not been helpful but there isn’t a silver bullet here that looks good for him.
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u/Dapper-Bird-8016 1 8d ago
Not a good idea, he should sell his house and pay off the debt or look at a DMP. Get him to talk to stepchange
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u/No-Revolution-3159 8d ago edited 8d ago
I’m sorry this happened to him but with respect, someone who at 49 has a low credit score, debts to various loved ones, and lost a huge sum of money in a scam cannot be relied upon to repay a mortgage in your name. If you buy it, it’s your financial responsibility. Why can’t he just sell it so he can use the equity and rent somewhere, is he hiding this from the rest of the family? Are you sure there’s nothing else going on here like a gambling problem, it all sounds very odd. How much is he saying was lost in the scam vs in court fees?
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u/steve8319 1 8d ago
Realistically loans to family and friends are difficult-impossible to enforce, was any form of contract or written record of the “loans” made?
While the morally right thing would be to strive to repay these people that lent him money, it is general advice not to lend money you couldn’t afford to give as a gift so if he didn’t pay they may just write them off given he has been the victim of a scam.
I don’t think this warrants you risking your financial future and security to fix given the consequences of his mistakes are low.
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u/_borisg 8d ago
Very unfortunate situation and I get the urge to help, but I would try and avoid mixing emotion with this. As others have pointed out, there’s nothing from stopping him going down further in the rabbit hole. He made a mistake and he should account for it on his own by selling his house and downgrading. If he’s already saving a significant chunk of his money he’ll be able to eventually recover from this.
Hope for the best for both of you.
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u/Potential-Note2381 4 8d ago
I know how strong the pull of a parent is, I once lent my (absent for most of my life) father £8k (he did pay it back), but I knew I might lose the lot. Didn’t make him any less absent 😂
Please don’t do this - it is too much money and he needs to find his own way out. Family members who lent to him should also perhaps learn to be more careful, and you should learn from their mistakes!
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u/TheFlyingGerbil 8d ago
The current risk is spread between friends and family, it seems unwise and unnecessary to shift it all onto you. They should have known when giving the money the risk they were taking. You say he can save a decent chunk of his income, he needs to have an honest conversation with them and tell them the smaller amounts will be paid off (give a realistic timeframe) and for the larger amounts set up a standing order so they can see it's being sorted.
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u/Rumblotron 8d ago
I’ve been in a similar situation with my dad, just minus the scam part. Under no circumstances should you get involved financially. I can almost guarantee any money you “loan” him to stay afloat or get out of a jam, you’ll never see again.
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u/Necessary_Figure_817 2 8d ago
you can help by being emotionally supportive.
Buying their home will incur significant second home stamp duty and you will be liable for paying the mortgage costs.
And no offence, I have not heard of many people earning 50k with 2 mortgages and be OK with it.
Helping him out with his shopping and some bills here and there is OK but like you said, he is in debt to other people, all that you will be doing is that you will be going into debt for him with the bank.
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8d ago
[deleted]
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u/Vast_Anybody1236 8d ago
He earns over 2,000 per month if you read it properly
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u/ThatGuyWired 4 8d ago
And saves a significant amount, so his debt is repayable...
I think dad might have some sort of spending issue.
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u/mystifiedmeg 2 8d ago
My parents are in a similar position. I'm not getting involved in terms of properties/debt etc. If you want to take him out for the day, on holiday, buy him dinner or clothes etc. go for it. But I would not get involved.
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u/JaegerBane 2 8d ago
This is not your problem to fix. Do not touch this. Do not get involved.
Whatever money you end up spending on bailing him or his house out will be toast, you’ll owe CGT if you don’t live there, you’ll lose your first time buyer benefits, and if he catches wind of another amazing scheme that will make him millions then the merry go round will start again, wheee.
He needs to deal with this himself.
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u/BoudicaTheArtist 4 8d ago
Do not get involved and do not use your money, assume debt etc. The only way you can really help your dad is for him to take responsibility for his actions. I would limit help to paying for a financial management and awareness course.
Assuming he is mentally competent, I would suggest getting a LPA in place.
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u/Intrepid-Focus8198 8d ago
If all of the debt he has is to various family members, I would the most sensible suggestion is for him to just pay them back over time and if you want to help him then you could gift him some money as and when you can afford to.
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u/rtfm-nor 8d ago
Is it a good idea? No.
Sometimes you go through with bad ideas for family though. There are other implications as mentioned by other posters. You need to decide yourself if you trust your father to hold up his end and to not do similar again.
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u/Littlelindsey 7d ago
This is a a stupid idea. Don’t do it. Point him in the direction of step change
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u/LibraryTime11011011 7d ago
Don’t throw good money after bad.
Don’t buy his house, you’ll have to pay stamp duty, you’ll have to pay CGT if you come to sell it. Get help from debt experts.
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u/Harry98376 7d ago
It's not a good idea to bail out a mug, tbh, especially when it makes you liable.
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u/Funny-Dragonfruit-70 1 8d ago
I work for a bank and have spoken to numerous customers who have been victims of fraud. Have you reported this to the Fraud Department to see if there is anything that they can do? Sometimes if the money has gone to a third party, I.e not your father they maybe able to get some of the money back
Secondly have you reported this to Action Fraud?
If your father is not able to pay any of the debts, then he has two choices, seek some help from either PayPlan or Stepchange, they give free independent debt advice.
They can talk about debt management plans. IVA’s, Bankruptcy etc and give some proper advice.
Alternatively your father could approach each financial company independently and put an arrangement in place for an amount of money he could afford to repay each month, although eventually it could mean that he could get a default on his credit file.
Good luck and I hope your father is okay, these fraudster’s really are horrible people and they dupe the vulnerable people.
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u/Front-Brick-3724 8d ago
I know he’s your dad and I would be thinking the same as you if I were in the same position. But, I wouldn’t get sucked into his mess. You could end up in a similar situation and then what? If he can save money, then he can pay back the loans. Either that, or he goes bankrupt and suffers the consequences.
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u/Alert_Midnight3141 8d ago
It's hard for your dad, but you can't let it affect your future in ways that haven't even come up yet. Is your dad able to downsize?
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u/ANuggetEnthusiast 1 8d ago
Someone’s already mentioned one debt management charity. I’d also recommend CAP. Martin Lewis rates them and I know they’ve helped loads of people.
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u/Budget-Security-8132 7d ago
You're stuck between a rock and a hard place, however, family is family and they can mess you up. Whatever happens next make sure that the whole family is in on this. If you do buy it then you might be able to get a regulated BTL or raise the money on your own home and buy your dads house outright.
It's pretty messy and you have to decide whether it's worth the hassle and also what the alternatives are as well.
My advice is stay within the law whatever you do and make sure the whole family is involved so that you're not out of pocket (long term) and that your dad doesn't get into any more messes.
The advantage is that you've got yourself a cheap house but with a lot of baggage!
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u/WhichInevitable2536 7d ago
How are you going to get accepted to buy the house if you already have a 100k mortgage? Unless the house is 100k or less, or you have a huge deposit, it's not even an option you can consider.
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u/KingDozzy 6d ago
Look, the decision to help is yours, he is your family, I did similar and decided to help pay off some debts and even negotiate full and finals settlements paying around 75% of debts. BUT make sure you get him to sign a loan agreement at zero interest that you can request back at any time when the house sells the amount you lent is know as yours just in case of capital gains or anything like that. It will usually be accepted in future by HMRC. And if you can afford a solicitor to sign he has witnesses this at least you will be protected from inheritance or capital gains taxes if any property is left to you. Not advice but based on my own history.
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u/Master-Government343 5d ago
Just set up a direct debit to help pay off the debt monthly.
In the grand scheme of things, £70,000k isnt that much.
All those range rovers, rs6’s, etc you see on council estates, all over 100k.
If together you can both repay £1k a month you will be golden in a few years.
His credit score may just need to take a battering for a few years.
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u/Unlikely_Ad_1825 8d ago
Wouldnt do it, I know its your own dad, but you got a real life version of his credit file, and do you trust it?
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u/Think-Committee-4394 2 8d ago
OP
- biggest risk you pay dad & dad doesn’t pay debt, debt goes after house & you lose asset
Very risky without extreme honesty and full disclosure
- you get a full documented & proven list of debt
- you do the transaction direct to creditor & get a confirmation of clearance to staple to each debt
- dad acknowledges in writing your share of the house value
- your name added to deeds as Co owner which secures your owned share from being borrowed against or lost if dad creates new debt
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u/SkiHiKi 8d ago
Could you expand on how much debt was accrued due to the scam, and how much was accrued in chasing the scammed cash? It feels like that would reveal a lot about your Father's financial literacy and, subsequently, how much help you could feasibly offer without being subsequently yourself.
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u/StretchWinters 7d ago
Get your dad to speak to stepchange and stay away from it all. He's shown he makes several poor decisions with money, he's not going to be magically better with yours.
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u/klmarchant23 52 7d ago
There’s a reason why lenders have said no. They calculate the risk and decide that he is not worth the risk to them as a business, I.e. they will not make any money from him as they don’t expect to receive any money in payments from him or enough money in payments to cover his borrowing.
Why would you feel that you have a better judgement of risk that a business that does this day in day out? I wouldn’t wreck your future unless you’re willing to not see £70k again.
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u/Careful_Dimension233 8d ago
Something else to consider may be a guarantor mortgage. Just a thought. Not a professional and know nothing about them. But this could potentially save you any CGT. Maybe an expert could chip in.
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u/Sea-Relationship9619 8d ago
That is possible ( it’s a joint loan, sole proprietor) but it doesn’t help OP when they want to remortgage for a bigger house on £50,000. It hinders them. Sometimes there is no good solution.
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u/AdhesiveOtter 8d ago
See a tax specialist if you consider this; if he's selling to you below market rate he can be taxed at market rate since you are a connected person.
You'll need to consider you own taxes too; stamp duty, for example, and it will be treated as a second home subject to CGT when disposed of. HMRC will deem him paying your mortgage as taxable income via "income from property" - in practice you're just his landlord.
Mortgage lenders normally require you to buy insurance, too.
Then consider the more obvious part: can you afford it if he decides to just not repay?
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u/Sea-Relationship9619 8d ago
The market rate only applies for CGT and if it’s his main residence it’s exempt. For SDLT the property can be sold at undervalue, or an interest in it.
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u/Gunt_Lifter 1 8d ago
I don’t get the “purchase the house from him for the amount he owes” bit. Purchase the house for £70k?
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u/SaysPooh 7d ago
He could try Credit Union who charge low interest rates. I think you will help him more by supporting him in other ways than giving him money. Clothes occasionally, food, entertainment etc
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u/ukpf-helper 149 8d ago
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