Excel for loan repayment/overpayment wanted.

talexuser

Does anyone have an excel spreadsheet for a loan repayment please?

I want to finance a young relative's house purchase with a personal loan rather than a mortgage, the idea being I get the equivalent of good interest, while he gets a rate lower than any mortgage available at any time.

Thus I need calculations based on repayment dates of simple interest I guess. And he wants to overpay as much as possible to get the capital down faster. So each month needs to subtract any overpayments.

There are mortgage repayment examples on the web, are these entirely suitable or do mortgage interest calculations differ in some way from savings calculations?

Presumably I have to pay tax on interest but not a capital?

innovate

Can't see why mortgage repayment spreadsheets should be any different to what you are after.

Much bigger challenge than the numbers would be who owns the property, what happens if there is a default in payments, who pays the relevant buildings insurance etc, and how all this is documented in a legally binding way.

I reckon you should ask the HMRC or an Accountant about the tax situation since it won't be straight-forward.

talexuser

Hi, the deeds will be transferred through normal solicitor purchase route with a contract for the loan detailing agreement on interest rate changes, and wills updated to suit. Buyer will own, subject to loan agreement, and be responsible for insurance.

Since repayments on a personal loan cannot be subject to tax, but interest payments from a savings institution are, I assume that I will only need to declare any yearly interest, but will check with solicitor when the time comes.

jennifernil

I am doing something similar for our daughter. We will have an agreement and I am placing a charge on the property. Less expensive for her than arranging a BTL mortgage, and more interest for me than the bank pays at present.

I will be declaring the interest payments for tax purposes, but as my income will still be below my personal allowance, I will not have any tax to pay.

My husband has made up a spreadsheet to calculate the interest and record her payments, it all seems pretty straightforward.

badger09

talexuser wrote: »

Does anyone have an excel spreadsheet for a loan repayment please?

I want to finance a young relative's house purchase with a personal loan rather than a mortgage, the idea being I get the equivalent of good interest, while he gets a rate lower than any mortgage available at any time.

Thus I need calculations based on repayment dates of simple interest I guess. And he wants to overpay as much as possible to get the capital down faster. So each month needs to subtract any overpayments.

There are mortgage repayment examples on the web, are these entirely suitable or do mortgage interest calculations differ in some way from savings calculations?

Presumably I have to pay tax on interest but not a capital?

Sorry, can't help on the spreadsheet - but the interest will be taxable income, so if you're liable (under 65 income over £8105), you'll have to declare and pay tax on it.

If you already SA, just include interest on your return. If you don't SA - depending on amount of loan, interest etc you'll probably have to register.

jennifernil

talexuser, I will ask my OH if he can send you his spreadsheet.

jennifernil

I have sent you a PM with a link now.

The interest is calculated on a daily basis as most lenders do these days, and it will cope with repayments as large and as frequent as required.

talexuser

Thank you very much :beer: