To help a friend with their house purchase?

I'll admit my first thought was what exactly is the nature of your friendship, for you to be even considering it. What does DH think?

You wouldn't be helping him with the money. You'd be enabling him.

Did he ask you ... or did you offer?
What does your DH think?

Are you a well funded bank?
You would be throwing away any financial security your family has.

What about when your children need deposits for their future housing... and he hasn't paid it back or only some of it. Or you have medical needs, care home needs for older relatives.

How long did it take you to earn these savings after tax?

Utter madness.

Put 100k and own that % of the house if you must.

But honestly? Step away.

Something you didn't mention, OP, was whether this is entirely your idea or if he's asked/hinted for the ££££?

It would make no difference to my decision, but if it's the second that might say something about his attitude to other people's money

You probably won't be able to lend him the money - you'll have to declare it's a gift for him to get a mortgage for the rest.

I'd help a good friend if I could really spare the money but I'd have to be comfortable with the idea that I'm might never see it again. Lending money ruins friendships. Generally speaking I'd much rather give than lend money.

Absolutely not OP, do not do this, it is a huge risk to your kids inheritance. What if you need help further down the line but haven't been paid back yet?

If you buy into the house with him, there is a possibility you could increase your 100k but what if you need money and he doesn't want to sell? This would be a complete no go for me.

Motto I have lived with my whole life - never lend money you can't afford to lose.

No. That is a huge amount of money to loose.

A decade! That’s no time at all to be giving someone ONE HUNDRED THOUSAND POUNDS!

The general advice is to never lend more than you are happy to lose. I've heard too many stories of friendships and even family relationships going sour over money. This is a huge amount of money that presumably the mortgage companies have deemed him unable to pay back. Buying a house with him would make things complicated down the road and throws up way too many "what ifs". In short, I wouldn't consider this at all

There's a saying . A fool and their money are easily parted. Don't do it, obviously!

Going through a similar thing at the moment, a family member loaning us money towards our deposit.

If you ‘gift’ it, it cannot be paid back. It’s a gift.

If you ‘loan’ it, very few mortgage lenders will make up the difference. Only one, in our case, will give us a mortgage for the rest.

You might also need a declaration of trust drawn up or a loan agreement that will lay out what the situation is and what happens if things go wrong.

If you can afford to lose 100k goright ahead
I guess you are a million a year earner?

Even if you gifted the money, he would be living in a house he can't afford. Recipe for disaster in so many ways.

Absolutely not , if he can't service a mortgage for the £100k then he is likely to have at least intermittent issues with repaying you based on his cash flow etc - recipe for end of a friendship and loss of money

You are utterly foolish for even considering this. Has he even asked you for the money?

Madness.

I could imagine doing this for a friend if they were a very good, reliable friend and it was £10k. A figure that could be repaid within a few years.

£100k...you're basically giving him a mortgage. Even if it all went well. It could well take him 20 years to pay you back and you'd lose a shit load of interest over the years.

Unless you are prepared to write it off don't. It is just far too easy to wriggle out of debt like this if he wants to. Friendship over and you are a 100K poorer. Only give him what you can afford to gift.. that way if he pays back great but if not you are prepared

A fool and their money is soon parted.

How will you explain to your kids the loss of their inheritance when they need to get on the ladder.

Don't be a mug, this is foolish in the extreme.

I wouldn't.

I'd feel sorry for him as it's not nice to lose something you'd rather keep hold of. But ultimately, a house is just a house. Sure he wants this particular one, but in truth any house in the right location will do.

I think you'd be daft to do it. That's not pennies either, imagine losing it if he decides he's not paying you back? (It might seem wildly unlikely but you never know people as well as you think you do.) And it's not just your kids' inheritance, it's money you might need to live on one day.

No I wouldn’t because you would be risking your kids inheritance.

You would be mad to do this.

Would you be able to buy the house yourselves and he pay you rent to live in it?
I think that's the only possible situation I'd consider.

This ^^

Even if there was some way of working it out circumstances can change and the ability to repay along with them, so I wouldn't even consider this ... quite apart from everything else I wouldn't want to risk losing a friend over money

No. And that amount is way too much.