Can my parents take out a loan for me?

marcarm

Would you rather lose £500 on a holiday deposit or take out more debt to the tune of £2k (for example) that you might not be able to pay back?

Don't drag your father into your situation, move dates or postpone the honeymoon, and use that as a reward when you get yourselves straight.

good luck

AnotherJoe

Simon81424 wrote: »

Thanks for all the replies people. To address some of your questions;

- The loan is affordable. Tesco (and a few others) have a rate of 3%, and I've calculated the payments to be within what we can afford.
- I'm not against moving the wedding and honeymoon, but we're going to lose our deposits.
- A lot of you have said that there is no 'Gift Tax', but HMRC seem to disagree. (I can't link to the page, but if you search "how much money can you give as a gift uk" there is .gov.uk that states the maxium is £3000.) Am I reading this wrong?

Thanks again for the responses.

Yes you are.

(as said its all to do with inheritance tax. Dont worry about it.)

Grumpelstiltskin

My take on this is that the loan is for over £3000, otherwise why would the OP mention that amount?

OP the idea is plain stupid and 2 things.

Just because Tesco advertise loans at 3% doesn't mean they will offer your father that rate.

If I were your father I wouldn't touch this idea with a barge pole bearing in mind your combined income has reduced. It is almost bound to come back and slap him in the face when you can't pay him back.


Forget the whole scheme.

Clive_Woody

You are assuming that your dad would get a loan at their representative rate of 3%, it could be a lot higher. What then?

Can your dad afford to pay this loan if your situation changes again and you cannot?

ratrace

It may seem harsh what all the posters are saying but they are making a very good point, also can your oh get a delivery driving job or even instore at a local dominos/pizza hut i have done this in the past when my hours were cut it dosent have to be forever but at least its somthing to keep the bills paid

you really need to think where is this going and where you are going to be in a few years time for eg: what going to happen after you are married are going to move into another house etc... how long is she plannig on not working (dont want to be harsh but it cant really be for a long time as you cant afford not to) do you plan on having any kids if so who is going to look after the child is one of you going to stay home or are you going to get childcare (which is expensive) if one is going to stay home can you get by with another mouth to feed on 1 income ect....

you have to take all this into account op, we dont want to be all doom and gloom but what we are being is realistic and living in the real world which is expensive


i hope you dont take out advise the wrong way it may come across as harsh but trust me its coming from a good place

Rainbowgirl84

Taking out a loan for a wedding is seldom a wise move. Getting a parent to do so is never a wise move.

Rainbowgirl84

Simon81424 wrote: »

Hi Everyone,

Can my Dad take out a loan and give me the money?

A little background - I am about to get married (Less than 6 months away), and my Fiancee and I have paid deposits for our wedding and honeymoon. Prior to this we were carrying a manageable level of debt, but recently my partner has had to leave her job through stress, and will not be returning to her industry. Her role was very well paid, and we were relying on this to fund our wedding and honeymoon. We are now left with bills that need to be paid in the next 4 months, which we cannot pay. She is self employed and has poor credit history (due to a delinquent ex, who is still on the mortgage) so a secured loan would be difficult and a remortgage is impossible.

As a result, I am holding total debt for both of us. We have been comfortably paying this down, but as it appears to any lender that I am carrying a large debt alone it means that I am struggling to get credit or refinance.

<End of Background>

To remedy this, I have asked my Dad to take out a personal loan at a good rate, pay the money into my account, and for me to pay the installments. He is provisionally on board, but we are unsure how and if we can do this.

There is information available about the dangers of this method of lending, but I can't find anything in the way of advice.

• Is this possible / legal?
• Would this method constitute a gift, and therefore be subject to tax?
• Should I approach a financial adviser about this?

Thanks for reading.

Simon81424 wrote: »

Thanks for all the replies people. To address some of your questions;

- The loan is affordable. Tesco (and a few others) have a rate of 3%, and I've calculated the payments to be within what we can afford.
- I'm not against moving the wedding and honeymoon, but we're going to lose our deposits.
- A lot of you have said that there is no 'Gift Tax', but HMRC seem to disagree. (I can't link to the page, but if you search "how much money can you give as a gift uk" there is .gov.uk that states the maxium is £3000.) Am I reading this wrong?

Thanks again for the responses.

Care to 'square' how these two bolded statements are remotely possibly true?


You can 't afford your current debt but can afford to take out more?

kerri_gt

Although you have put down deposits for the wedding / honeymoon are these amounts you could if push comes to shove, afford to wave goodbye to rather than take on more debt? I know it isn't a desirable option but if your OH is already suffering stress then adding more debt is only going to add to that, let alone the stress of actually organising the wedding.

Could you do one or the other and change plans accordingly? Can you scale either back to what you can afford?

Whilst its very generous of your father to potentially take out a loan, I would be looking at all options not to do this.

zippygeorgeandben

So much good advice here. Please do not decide that to cheer your fianc! up that you'll go through with paying through the nose for a wedding.
You aren't getting married for a big party, it's for the times after, good and bad, rich or poor.
Don't drag your dad into it, you know it's the right thing to do.