Borrowing from friends family

ste72

Looking to borrow £10,000 from family or friend but want to give them security and would be prepared to put a charge on property which I have equity in to safeguard their money.  Can anyone advise

Keep_pedalling

Is the property mortgaged? 

ste72

Yes 70k on mortgage and valued at 150k

Emmia

Personally I would avoid mixing borrowing with friends or family. 

I'll make a wild assumption.... are you seeking to do this as banks /.lenders won't lend to you at ok rates?

DullGreyGuy

ste72 said:

Looking to borrow £10,000 from family or friend but want to give them security and would be prepared to put a charge on property which I have equity in to safeguard their money.  Can anyone advise

Are they wanting security? 

Putting a second charge on a property is complex and wouldnt be looking to do so unless it was conditional on the lending. 

Hoenir

ste72 said:

Yes 70k on mortgage and valued at 150k

Then the 1st mortgage holder might well decline the application for a 2nd charge. 

Emmia

ste72 said:

Looking to borrow £10,000 from family or friend but want to give them security and would be prepared to put a charge on property which I have equity in to safeguard their money.  Can anyone advise

The property you have equity in... is it your property that you live in, or something else. I ask as it's an odd way to express the security arrangement.

prettyandfluffy

There are too many potential pitfalls in borrowing from family & friends and the very significant risk of things going wrong and falling out with them.  Far better to borrow as a straight business transaction through the usual channels.

MEM62

ste72 said:

Can anyone advise

Yes, don't!  Friends / family and money do not mix.  

ste72

Yes I live in the property 

Emmia

ste72 said:

Yes I live in the property 

I'd advise using a commercial lender, not friends or family. For 10k you're also in the territory of a personal loan that isn't secured on your property

If a commercial lender won't give you the money, either via a personal loan or via a secured charge there's a reason for that (probably that they are sure you can't afford to repay).

Don't sour personal and/or familial relationships by asking for this money (and of course they could also decline to lend to you).