Lending money to a friend

27col

iolanthe07 wrote: »

Your uncle should only do this if he is easily able and willing to stand the loss. There is a reason why his 'friend' can't get a loan in his/her own name. Think about it.

I'm trying to think what the reason could possibly be, that the friend cannot get a loan.
Oh!, I know, he has a bad credit record.
Tell your uncle not to do it. It can only end in tears.

Fruit_and_Nut_Case

Apples2 wrote: »

Has anyone suggested this is a stupid idea?

Just dropped in to ask the same question. The forum is littered with people who have been suckered in to this sort of thing.

somethingcorporate

Should you do this?

Short answer: "No".

Long answer: "Noooooooooooooooooooooooooo!!!!!!!!!!!"

Clive_Woody

Apples2 wrote: »

Has anyone suggested this is a stupid idea?

No one with a credit score over 1000 so their opinions are irrelevant.

Nasqueron

And seriously, 5000 for a caravan - can't stand the things personally but it's obviously a want, not a need - could see the point of a car (though would say get a £2000 car) but something purely for leisure is a joke - why not just save the £2000 and stay in caravans you can rent - borrowing to spend on an unnecessary luxury is madness

[Deleted User]

apart from it being a really really stupid idea a caravan for £5000 will be little better than a skip on wheels

Voyager2002

What a brilliant idea!

When 'friend' treats your uncle the same as he has evidently treated everyone else who has lent him money (explanation above about credit rating..) then there will be a certain amount of unpleasantness, guaranteed. At the end the two will hate each other, and your uncle will be well rid of an exploiter posing as a friend. An out come well worth a few thousand...

dealer_wins

Tell you one thing OP, why not insist that YOU buy the caravan in YOUR name, and transfer ownership when your "friend" has paid the whole loan off? On the condition that if he misses a single payment he loses the caravan.

Not that I would recommend this in 1000 years, but if I were doing it I would have the asset completely in my name. I bet if you put that to your "friend" he wont be so keen to go ahead and part with his £2000!!

bargainbetty

If your uncle absolutely insists on this, they the caravan must be in his name until the balance is paid in full. No other option at all.

Nothing else offers him a shred of protection, and if the 'friend' is so keen to do it, then he won't have an issue with giving his £2k over, because they trust each other totally, right?

Did anyone mention that taking out a loan for someone for such an utterly non-esential thing is a stupid idea? Just wondering?

poppasmurf_bewdley

Why isn't the friend getting the loan in his own name? Could it be that the friend has a poor credit history and no loan company will touch him with a bargepole?

Maybe your father should be more like the loan companies.