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hugo7
ChasnotRobert
Not investment but not entirely unrelated.
I'm considering lending a friend some money toward a house deposit. They've not asked and I've not offered yet. I don't have any concerns about trustworthiness or ability to repay, and I've no need to make any money out of it. I'm happy to lose the equivalent interest by not investing it.
But when applying for a mortgage the bank will obviously ask about anything owing. Ideally I (and I imagine my friend) would like it to be above board. So calling it a gift probably isn't advisable(?).
Is something like the following at all legit?
Lending (for example) £10,000, at a rate of 0% interest, to be repaid over the next 20 years, allowing unlimited overpayments.
In reality, they'd be able to repay over a couple of years, but I suspect the bank would prefer seeing an outgoing of £40 instead of £400pm.
Naturally I'd just forward the bank manager to this thread as proof that I've been properly advised by LFGIFA's.