Lending to a friend

[Deleted User]

ThisnotThat said:

Sncjw said:

The mortgage lender probably will reject the application as theres no source for the deposit. They usually need bank statements to show the person. Has been saving and got the money from genuine sources

Not quite true.  A gift is a perfectly acceptable source for a deposit.  But if it isn't a gift, you'd be committing fraud if you said it was.

Sort of. Lenders tend to have restrictions on who can gift the money. Usually it’s only family members related by blood, legal adoption or marriage/civil partnership so a gifted deposit from a friend would not be acceptable. 

macman

Finally, if you ignore most of the above advice and do lend it, then get it agreed in writing. A verbal agreement is legally binding, but once in dispute it will simply turn into 'she said/she said', and it's impossible to prove what was agreed .You need to agree 1) the interest to be paid, 2) the repayment period and the date that will start. Without the latter it's open-ended.

cymruchris

If it's not too late - I would also add not to do it either. Not unless you're happy losing either the money, the friendship or both.

GeordieGeorge

If you do get your money back in full and on time (which isn’t likely) there are still myriad ways that this can sour your friendship.

I’d agree with those who say don’t do it.