Unexpected cash gift

exponential

Mrs_Arthur_Crown wrote: »

As said, get something in writing. It doesn't need to be official (ie a solicitor or similar). Just ensure that everything is in writing, including the payment terms, and that all signatures are witnessed, ideally by an independent witness so that there are no arguments.

I lent my oldest and best friend £20,000 nearly 20 years ago as health issues precluded her from getting a decent mortgage offer. Even though we have been friends all our lives, and trust each other implicitly we both wanted everything is in writing. We both altered our Wills to take account of what would happen if one of us died. She kept to the payment plan and yes, we're still best buddies and she still lives in that house. We have changed our wills back now too.

I don't know how much of an issue money laundering would be. If your friend is a long term customer of the bank, I am sure nothing would flag up. Best not to lie about what the money is for. I am sure an explanation from your friend to the bank clerk would be satisfactory. Or he/she could write a cheque.

Good luck

Wow!

What a wonderful story! That lifts your heart doesn't it.
It's great when people can help each other and it doesn't impact a friendship!
When I told my wife what was said, my wife initially refused it.
She didn't want this to have an impact on our friendship....
Our good friend rang my wife a few hours ago to reassure her that it's what she wants to do....

It's an amazing thing.... We never get any luck..... Until today..

exponential

AnotherJoe wrote: »

What have you and your wife done to stop those debts rising ..... seems as if she already had some significant debt to start with, and you I presume also ? Were you both overspending or was it some extreme events?
I suggest you document this loan, get it signed and witnessed. Also try and pay it back quicker. If £800 is significantly less than now could you overpay by say £100-£200?

P.s. why does your friend need to worry about money laundering and transferring the money to your account .? you can get settlement figures for the loans and she can pay the debts off directly without passing through your accounts.

Good point on the P. S... didn't think of that for some reason... LOL

xylophone

Can you elaborate on this? I'm not familiar with this....

https://www.moneysupermarket.com/life-insurance/decreasing-term/

Mojisola

exponential wrote: »

She is concerned about any questions the bank will ask when she is doing the transfer.

She said she will say its to help us with a deposit for a house which, of course, is a lie.

I don't want her to lie about anything so can she literally just say she is gifting the money to us?

Telling lies about the reason for transferring the money is the quickest way to make people suspicious!

If she's asked about it, she should tell the truth - she is loaning the money to friends. It could be worth having the paperwork to show the bank - they may think that she is being conned out of the money and will want to protect her.

exponential

xylophone wrote: »

https://www.moneysupermarket.com/life-insurance/decreasing-term/

Very helpful... Thanks.

Lorian

Presumably she is charging a reasonable interest rate? Is it fixed for the term of the loan?

eskbanker

exponential wrote: »

She is concerned about any questions the bank will ask when she is doing the transfer.
She said she will say its to help us with a deposit for a house which, of course, is a lie.
I don't want her to lie about anything so can she literally just say she is gifting the money to us?

Saying it's a gift would also be a lie, and one which will be pretty obvious to her bank when the £800 repayments start rolling in every month thereafter....

exponential

Lorian wrote: »

Presumably she is charging a reasonable interest rate? Is it fixed for the term of the loan?

There is no interest rate at all. She just wants me to pay back what I can afford each month until the debt is repaid.
I offered to overpay by 4 months at the end as a thank you...

exponential

eskbanker wrote: »

Saying it's a gift would also be a lie, and one which will be pretty obvious to her bank when the £800 repayments start rolling in every month thereafter....

Fair comment.

I've heard that "loaning" someone money is frowned upon as the loan wouldn't be covered under FCA rules etc etc.....

Hence saying a gift....

eskbanker

exponential wrote: »

I've heard that "loaning" someone money is frowned upon as the loan wouldn't be covered under FCA rules etc etc.....

I don't see how a loan between private individuals could come anywhere near the FCA's remit, where did you hear this?