Help to buy and equity share in another house

NewHomeowner_3

Help.
I have just bought my first house using help to buy with my partner. Everything is going swimmingly for us, we have lots of money left after all the bills and we are very risk averse in terms of saving for a rainy day and future problems.

Here's the problem...my father's house has been repossessed because he's in mortgage arrears. He's technically homeless and living on my sister's sofa. His mortgage company have said if he pays the arrears in full (£15k) he can have the house back. This is the house where I grew up, it's a state (since my mum left my dad it's gone very downhill) so needs gutting inside and will be auctioned for much less than it's worth, probably to some greedy developer (the land it's on would be worth a lot), and my dad doesn't have much equity after re-mortgaging since my mum left, so he'd be left with nothing. My sister can't help financially.

He has been turned down for loans for obvious reasons.
I want to help and I know I could easily get a bank loan to lend to him. BUT, he's a nightmare and I would probably never see a penny back unless it was formally written up that I have a stake in the house. But I have help to buy so am not allowed to own more than one house. Is there a way around this, as I wouldn't be actually on the mortgage and making monthly payments, I would just have an interest in it?
Does anyone have any ideas?

Thanks

amnblog

Don't borrow money to lend to someone else.

You Dad has already unfortunately proved he wont keep his end up.

kingstreet

How can you raise this money without being party to the mortgage and ownership?

You are talking about someone who has suffered a repossession. Your father is not going to be accepted by any mortgage lender.

Annisele

Assuming you get a personal loan for £15k, lend it to your Dad, and he uses it to repay the arrears - what then?

From the sounds of it he can't afford to pay his existing mortgage commitments, so I can't see how he could afford to repay you as well. If he defaults on his mortgage again, then the bank will just take possession again. You'd be £15k down, and he'd be essentially in the same position he's in now.

I can see why you want to help your Dad, but I'm not sure that borrowing money is the right way to do it. If he's let the house get into a state, then possibly it's too big for him / too much work / too difficult for some other reason. He might be better off not holding on to the house and renting somewhere.