Future Funding Question

[Gilmore]

Parent has £150,000 of cash in the bank.

Looking to buy a home to live in outright that is going to be circa £150,00.

Son would like to raise £30,000 of funding for upcoming project in the next two years.

Would it make sense for parent to provide £30,000 to son now and son take out mortgage for the same amount on upcoming house purchase?

Providing can find a product that has no early repayment charges, would that make financial sense and likely be a better rate than other funding options?

[dingg]

What happens if Son makes an arse of things or something goes awry and can no longer afford to service mortgage?

Eta shouldn't Son just remortgage own property instead of involving parental responsibility?

[dmahu]

If the parent is sailing that close to the wind with their retirement then they should not be taking debt on for their childrens projects, even if their children are Elon Musk and Jeff Bezos!

[fat80b]

These kind of arrangements are usually a lot more complicated than they first seem - you need to think about things like :

What happens if the one of them die ?
What happens if the son gets divorced ?
What happens if the parent needs care ?
What happens if the son goes bankrupt ?
Etc etc

For the sake of 30k, either the parent should gift it to the kid, or the kid should raise their own finance.

[Gilmore]

fat80b said:

These kind of arrangements are usually a lot more complicated than they first seem - you need to think about things like :

What happens if the one of them die ?
What happens if the son gets divorced ?
What happens if the parent needs care ?
What happens if the son goes bankrupt ?
Etc etc

For the sake of 30k, either the parent should gift it to the kid, or the kid should raise their own finance.

All good questions that need answering.

Appreciated.

Quite a while from retirement yet so not a concern on that behalf.