Risk of paying off a debt for a relative during house purchase?

thesaint

moneyistooshorttomention wrote: »

DO listen to us all OP. This is one of the very few threads coming up on MSE where we've all been unanimous in agreeing you really shouldnt do this.

Consensus yes. Unanimous no.

maninthestreet

Fast forward two weeks - the OP lent their relative the £4K, but now the relative has informed them that the £4K they were expecting to be paid has been delayed, inexplicably, and they will now not get this money 'for a few more weeks'. The OP's house purchase is now in jeopardy, as the vendor has stated they will put the house back on the market unless exchange takes place within the next 10 days....the OP returns to this thread to ask what 'rights' they have....

hazyjo

Another point - he must be up to his eyeballs in debt not to be able to put it on the credit card or overdraft if it's that temporary.


I'm only on an average London legal sec wage and my credit card limit is something ridiculous like £6,500 (not at my request), and my overdraft limit over £4k (again, not at my request). His would undoubtedly be far higher... MUST be in debt on everything. If he really is getting £4k by next month, he will probably find other creditors will automatically take it as soon as it hits his bank account.


The person I used to know also borrowed money left right and centre. He used to quote the bible and occasionally go to church and borrowed thousands off some of the kind/generous church-going people there. Some never saw a penny back - yet he'd still go borrow more (and feed them a pack of lies). Weirdly he was very generous and would pay for things for other people (although that did include coke for all and sundry).


Have you decided yet, OP?


Jx

lovehackney

They'll need to be earning a lot more than £72k pa to clear £6k a month - that doesn't take into account tax, NI, student loan (maybe), pension (maybe) etc

marksoton

brazillondon wrote: »

Am we putting ourselves at significant risk here?

Yep. Don't do it. It's that simple.

sheramber

If the bank think there is money laundering they may well freeze your account\s.

TBagpuss

I agree with the majority of posters here. Don't do it.

If your relative could genuinely afford to return your money in 2 weeks, then they will have other option to get the money.

If they can't get the money from any other source, then the chances of them being able to get it back to you is slim.

And on top of that there are potential risks in relation to triggering concerns over money laundering, failing a last minute credit check with your lender.

Your relationship with this person is unlikely to survive if they lose you your £4,000 and your house.

If you are still considering this possibility, think again. What evidence has your relation given you of their ability to repay this money in the timescale needed?
What evidence have they given you that they cannot raise the money any other way.
What evidence (for example, previous actions) do you have to lead you to 'trust' they will repay you.
What does the debt relate to, and why is it so urgent? Have they provided you with any evidence of that?

Have you done any of the basic investigation or 'due diligence' that you would do if you were thinking about investing £4,000 you can't afford to lose, in any other way?