Calculating the Current Value of an Old Loan

Paulee

In June 1989 I lent my brother £50k. Shortly afterwards the economy collapsed, he was unable to repay me & I also found myself in debt. My bank loan increased to £500k until I worked my way out of it four years later. I haven't spoken to my brother for many years, but he has recently contacted me & wants to pay me back.

I have found the historical Bank of England base rates over this period, but can anyone tell me where I can find the information to allow me to calculate the current value of the debt. I anticipate that I will be using a "savings type" rate of around base rate - 1%. However, it would be interesting to see what a "lending type" rate of base + 2% would come to.

Thanks to anyone who can help me.

jonesMUFCforever

Interesting - if he had not spoken to you for say more than say 6 years then the debt is surely statute barred?

Could he be after something else other than just repaying you out of the blue?
You also need to be careful if you are running a business that you have not already written this off in your accounts some years ago, or you could face a hefty tax bill.

Paulee

ejones999 wrote: »

Interesting - if he had not spoken to you for say more than say 6 years then the debt is surely statute barred?

Could he be after something else other than just repaying you out of the blue?
You also need to be careful if you are running a business that you have not already written this off in your accounts some years ago, or you could face a hefty tax bill.

Thanks for the points you have raised. It is considerably longer than 6 years since I spoke to my brother and yes, he is after something else. His actions, along with money he borrowed from other family members split our family. He is now trying to make ammends (I am told) and it would be nice to have a brother again. This loan is not connected with my business.