We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
borrowing from family to pay off secured loan
Sarah100_3
Posts: 10 Forumite
Hi, I wondered if anyone could give me any advice about borrowing from parents.
Here is our situation:
We have a £100,000 mortgage.
Also a £25,000 SECURED loan on a horrible 10.6% rate taken out about 4 years ago over 15 years when we were struggling. We haven't missed one payment and I know that we are paying horrific interest on this loan.
I also have savings of about 5k
Recently our parents said they have £20000 that we could borrow which is almost certainly on a lower rate and we could probably pay it off over 5 or 6 years.
I have a good, trusting relationship with my parents and I am really tempted by the offer to pay off the secured loan however I want to ensure that, should something go wrong (lose job etc) that they would be protected.
My question is this:
What is the best way/s to ensure my parents are protected and is taking the loan a good idea all round?
Many thanks in advance,
Here is our situation:
We have a £100,000 mortgage.
Also a £25,000 SECURED loan on a horrible 10.6% rate taken out about 4 years ago over 15 years when we were struggling. We haven't missed one payment and I know that we are paying horrific interest on this loan.
I also have savings of about 5k
Recently our parents said they have £20000 that we could borrow which is almost certainly on a lower rate and we could probably pay it off over 5 or 6 years.
I have a good, trusting relationship with my parents and I am really tempted by the offer to pay off the secured loan however I want to ensure that, should something go wrong (lose job etc) that they would be protected.
My question is this:
What is the best way/s to ensure my parents are protected and is taking the loan a good idea all round?
Many thanks in advance,
0
Comments
-
hi
CAn you post a full SOA on here, see http://www.makesenseofcards.com/soacalc.html
And can you check the terms and conditions of your secured loan.
What is the exit penalty?If you've have not made a mistake, you've made nothing0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards