Best way to get £5K quick?

ILW

If you have a couple of thousand going thru your account every month, a £5,000 overdraft should just be a matter of a phone call to your branch.

escortg3

i Know people that have a 10,000 Overdraft so it must be possible

Tixy

I'd consider a mix of an overdraft and the easy access savings, you should still be able to work out the interest pretty easy. And it will be cheaper than all on overdraft. Overdraft should be quicker than a loan.

If you go for a loan the early repayment penalty is usually one month's interest (but carefully check the T&Cs on which ever loan you go for). If you get a deal thats just one month's interest as the penalty you would be looking at probably no more than £50.

I know she is family but get something in writing about the loan. Just that states it is a loan, when she will pay you back, whether she will pay interest etc and get it signed by you all.

macman

Why does she need to buy the new property before selling the old? If for whatever reason the sale doesn't go through, you're left with the debt, and servicing it.

Bravehearted_2

I see this ending badly.

Your Mother in Law will default on paying you back and you will be stuck making repayments. You will stop paying her the £600pm and she may stop looking after your son.

I say she will default on paying you back because she clearly can't afford the 5k now and wont be able to afford it even after the divorce settlement.

Why not wait? Or buy a more affordable house?

And you assume you and your husband have good credit and will be approved - when you haven't even checked.

You might want to slow down and think carefully about other options before falling into unnecessary debt.

Sarahbear666

Thanks everyone

I have to admit i'm feeling a bit nervous about it all, and i forwarded this thread to my husband which frightened him too!
When I had a postgrad loan for doing my masters (many years ago!) i think my Dad acted as guarantor, given i was an unemployed postgrad. Do you think my mother in law could get a loan with us as guarantors or is this just soemthing banks do for students?
I know risky but she is my mother in law!

Tixy

Guarantor loans still exist but don't touch them. You will pay a much higher interest than if the guarantor takes out the loan in their own name. And you lose control of the account (ie you won't know at first if she misses a payment, until they take the payment and charges from you and have marked you credit file). The truth is being a guarantor carries all the risks of borrowing the money yourself and lending it to her - you are still legally liable for the loan and its your credit rating that would be affected.

I wouldn't consider lending her the £5k at all unless you can afford to service the debt yourself/afford to lose the money if the worst happens.

What was the reason for trying to complete on new house before old house is sold?

ILW

Do it if can afford to lose the money. If not, do not.

Sarahbear666

Doesn't want to lose it, can get it cheaper if she can prove she can complete quickly.

Sarahbear666

Thanks everyone for all your useful comments. We've decided, given the concern about how long we could be saddled with her debt, that we're going to say we can't help. She will have to wait until she has the cash from the house sale like most people!
The thought of having another loan repayment to manage (on top of the two we have) or having our bank balance in minus figures, in the run up to Christmas frightens me. We've worked too hard to keep our own finances healthy.

Really really grateful for all your help with this, its great having a place to turn to for advice!