Four years ago I lent DD (now 29) 100% of the cash to buy a 3 bed house.
The plan was that she would have lodgers to help pay the mortgage and after five years (when hopefully she would be earning enough to remortgage with a commercial lender) she would pay me back.
I am approaching retirement and the money will go towards my pension pot
DD struggled with social interaction and has recently been diagnosed with autism. She is also on medication for anxiety and depression. Lockdown exacerbated her poor mental health and she and hasn't held down any job for long.
With the hike in mortgage rates, it is unlikely that she will be able to remortgage and pay me back without selling the house at the end of the original five year term.
She seems to fall out with her housemates all the time. She wants to move to a smaller property where she doesn't have to share, but she can only do this if I continue her mortgage at the previous low rate of 2%. (I will lose out because current mortgage rates are around 5%.)
I'm reluctant to do this because I don't want to have to rely on her for part of my income in retirement.
If I pull the plug she will have to rent a room in a house share like many people her age. If I don't, I lose out. She has built up some equity but not enough to buy anywhere without a mortgage.
I now regret entangling our finances. I want to help her but not at the expense of my financial future.
WWYD