Lending £10k, how much to pay me back?

gord115

I have offered to lend a relative £10000 from my Santander current account.
This pays 1.5% interest.
I don't want to make anything out of this deal but my relative wants
to pay me back without it costing me.
How much per month should they pay me back over 48 monthly payment?

dmelife

£222 per month, rounded up to the nearest pound!

ctdctd

dmelife wrote: »

£222 per month, rounded up to the nearest pound!

Not strictly true, given that capital is reducing throughout the loan.


I make it £215 per month for £10,000 @ 1.5% repayable over 48 months.

Sea_Shell

I hope it all works out for you, but you only have to read these forums for a while to see all the tails of woe about loans not being paid back. Just be aware, that there is a chance you won't get it all back.

Why do they need the money? Are you sure they have the spare cash to pay you back each month? Can you afford to write off this money if they don't pay you back?

If you're still intent on lending, at least get something in writing stating all the terms, then both sign it.

Good luck!

Sea_Shell

Also, have you now paid off your £11k outstanding loan you had back in January 18? Wasn't the money in your Santander account ringfenced for that??

Personally I wouldn't lend any money to anyone, if I still had debt myself. Do you?

frugalmacdugal

Hi,

ctdctd wrote: »

Not strictly true, given that capital is reducing throughout the loan.

aye, but the interest on the £10,000, if left in Santander and interest rate remains at 1.5% for 4 years would be, £600.

ctdctd

frugalmacdugal wrote: »

Hi,
aye, but the interest on the £10,000, if left in Santander and interest rate remains at 1.5% for 4 years would be, £600.

Presumably, as the loan is repaid, the OP will put it back in Santander and earn interest on it.
As they said that they didn't want to profit out of the deal, repayments based on reducing capital is the way to go!

DigForVictory

Sea_Shell wrote: »

Why do they need the money? Are you sure they have the spare cash to pay you back each month? Can you afford to write off this money if they don't pay you back?

If you're still intent on lending, at least get something in writing stating all the terms, then both sign it.

Beautifully put & absolutely agreed with.

OP, if you must go ahead with this, do please protect your money with the appropriate agreed signed paperwork. If everything goes sideways you can then chose which to cope without, the funds or the family but without the paperwork you are risking both.

As a side thought have you a Will? Stick a copy of the agreed loan paperwork alongside it?

AnotherJoe

DigForVictory wrote: »

Beautifully put & absolutely agreed with.

OP, if you must go ahead with this, do please [STRIKE]protect[/STRIKE] document your lost money with the appropriate agreed signed paperwork. If everything goes sideways you can then chose which to cope without, the funds or the family but without the paperwork you are risking both.

As a side thought have you a Will? Stick a copy of the agreed loan paperwork alongside it?

Fixed your typos. Yes good idea about will

SmashedAvacado

i would want to be very clear about how they were going to pay you back. is the loan to cover them for example until they sell their house, or until they get some inheritance - that might be a better bet in terms of getting your money back when compared to lending it to someone who has just run out of money.

Malthusian

Why can't they get a loan from their bank? While putting as much as possible on a credit card with a 0% deal for 24 months?