Tax avoidance? Parent buying house for child on loan.

[emmalinewre]

Hi!
A few year ago my dad gave me and my sibling £200k each to buy a house each - on the condition that we sign a contract with him paying him back £600 per month on an ongoing basis.
Friends at the time were pleased for us, we're very lucky to be on the propery ladder - I appreciate all that.
However, it has become rather a burden as that is a lot of money a month to find, and I suspect this is some sort of way my dad can avoid tax - as he refers to these monthly payments he gets from us as his 'income.'
He also has around ten different savings accounts, some in the UAE, which seems a bit shifty.
Can anyone with knowledge of tax/similar advise as to how he may be benefitting from this arrangement?
My sibling thinks its all great and he's just a wonderful parent, but myself and husband feel rather locked in and controlled financially by the situation - and with no way out as its not as if we can buy out of it.

Thanks!

indeed....
far from being "dodgy", father may well be rather astute and is actually protecting his children's inheritance from grubby divorces by ensuring the money is still within his estate and subject to the terms of his will.

Him being dead he then has less concern about an ex spouse subsequently getting a share of his money?.

The dad just sounds controlling then. Who controls a child for 27 years? This just sounds odd to me. The deeds of a property would just be 60/40 or whatever to reflect different inputs. The dc still have the problem that there are two loans on the property.

Is your mortgage co aware of this loan?

@KneesUnder Thats an issue discussed some pages ago. They usually want evidence that there’s not a loan for deposit. It should be certified as a gift. It will affect the loan offered. There’s a third entity in the finance of the property. Mortgage co, OP and her dad.