Forum Home » Savings & Investments

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

New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: UPDATED MSE Coronavirus Guides

NEWSFLASH


New, free ‘Academoney’ course from MSE and the Open University launches
All the key areas of personal finance are covered, so that you can master your money decisions


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

edited 30 November -1 at 1:00AM in Savings & Investments
24 replies 2.4K views
gord115gord115 Forumite
1K posts
edited 30 November -1 at 1:00AM in Savings & Investments
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?
«13

Replies

  • dmelifedmelife Forumite
    130 posts
    £222 per month, rounded up to the nearest pound!
  • ctdctdctdctd Forumite
    948 posts
    Part of the Furniture 500 Posts Name Dropper
    ✭✭✭
    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.
    Do Money Saving sites make you buy more bargains - and spend more money?
  • Sea_ShellSea_Shell Forumite
    3.8K posts
    1,000 Posts Fifth Anniversary Name Dropper Hung up my suit!
    ✭✭✭✭
    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!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • Sea_ShellSea_Shell Forumite
    3.8K posts
    1,000 Posts Fifth Anniversary Name Dropper Hung up my suit!
    ✭✭✭✭
    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?
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow ":beer: JOB DONE!!
    This should now read "It's time to start digging up those Squirrelled Nuts"!!! :j:j:j
  • frugalmacdugalfrugalmacdugal Forumite
    7.4K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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.
    Y'all take care now.
    happy0207.gif

  • ctdctdctdctd Forumite
    948 posts
    Part of the Furniture 500 Posts Name Dropper
    ✭✭✭
    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!
    Do Money Saving sites make you buy more bargains - and spend more money?
  • DigForVictoryDigForVictory Forumite
    11.2K posts
    Tenth Anniversary 10,000 Posts Photogenic I've been Money Tipped!
    ✭✭✭✭✭
    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?
  • AnotherJoeAnotherJoe Forumite
    17.2K posts
    10,000 Posts Fourth Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    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
  • SmashedAvacadoSmashedAvacado Forumite
    1.3K posts
    1,000 Posts First Anniversary
    ✭✭✭
    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.
  • MalthusianMalthusian Forumite
    8.1K posts
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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?
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support