loan to pay rent

fly53

Hi guys, my first post here but i need some advice.

my friend says she'll soon to starting to fall behind on rent and has applied for a loan to cover the duration of the tenancy and will pay the rent with the loan.

the loan has been approved and is awaiting signing

my question is this, my concern is that she said the loan is for a holiday not to pay rent.
how likely are they to find out?

she says shes moving the loan to a friends account and will make a standing order from that one

any advice would be great

is she taking a huge risk? or wont the lender be bothered unless its paid?

thanks!

[Deleted User]

She's technically committing fraud. While the consequences are very significant, the risk of being found out is low.

The wider problem is that she's living beyond her means, and if she can't cut her costs or earn more, she will ultimately default.

fly53

thanks for the response

she says the loan will cover the remainder of the tenancy and she'll go back to her parents when tenancy ends.

i can see it is a risk. im suprised the letting agent would let her use another persons account to pay them into

DCFC79

Not trying to detract the thread from the subject but don't get drawn into lending your friend any money unless you can afford to lose it.

lynz68

So how is she going to pay the loan?

My advice would be to stay out of it this has disaster written all over it.

Comms69

I doubt the lender will care.


In anycase, she'd be better not getting the loan and letting arrears build up, thereby getting evicted sooner.


There's very little interest on late rent

Arleen

The only situations where lenders will care if the debt falls delinquent without paying, well, even a one payment. If it falls somewhere down the line it will be just sold along as every other bad loan.

Candyapple

fly53 wrote: »

she says shes moving the loan to a friends account and will make a standing order from that one

Why? What's wrong with her own bank account?

Why is this friend allowing her to use their bank account?

tonyh66

sounds like a guarantor loan to me, its good to have an amigo but a very bad idea to get a loan to pay rent.

fly53

Its not a guarantur she just want to put the loan into someone elses acvount so the lender cant see where its going..
least thats my understanding.

MEM62

Comms69 wrote: »

There's very little interest on late rent

Maybe but there are the Landlord's legal costs and she will still be liable for rent to the end of the tenancy. Poor advice in my opinion.