Helping family out

Debbie9009

Your sister had the same opportunity as you to put down a deposit on a house, she chose not to do this, so I think her asking you to help her by buying a house she can rent is very unfair.  Like others have already commented I think you have really dodged a potentially very bad situation here, she has blown her inheritance and also has an IVA, I suspect if you went through with this it wouldn’t be long before she was telling you she didn’t have enough to pay the rent.

I would go with Zerforax’s wording when you tell her you are unable to get a BTL mortgage, its simple and makes it hard for her to try other suggestions to get what she wants from you.  be prepared though for her being upset, and possibly asking if you could buy on a standard mortgage and still rent to her, the answer to this would be no it’s mortgage fraud.  

You can offer to help her with her budget, but as the saying goes you can lead a horse to water etc. I suspect she hasn’t had her light bulb moment yet, and until she does, no amount of help from you will work.

Apologies if this sounds harsh, I’m basing this on my own experience with a friend who was also saying they never had any money, and moaning about how hard done by she was, and was constantly asking for loans, yet managed lots of holidays, meals out, owned several vehicles and could never understand that’s why she didn’t have the money for essential bills. 

[Deleted User]

If you rent to her and she does not pay, you will end up paying and eventually losing the property.

Not worth the risk. 

You avoided problems.