I’ve never borrowed money apart from off family, small amounts on credit card or interest free loans, and to buy a house so I don’t know a lot about borrowing significant unsecured amounts.

Say I needed to borrow £25k in the cheapest way possible with the following criteria:

– no monthly repayments, just a lump sum payment to settle

– repayment within a maximum of one year with options for early repayment

What are my options?

Thanks.

Interest free credit card? You might get up to £25k if you have a good credit history.

The lack of monthly repayments is throwing the usual options of peer-to-peer loans or putting it on the mortgage.

Interest free credit cards I’d have thought. However, you’ll have to spread it over three or four cards at a guess, and they want monthly repayments of a minimum 1% of the balance, so you’d have to repay £250 monthly. There aren’t many card companies that will lend you much more than 10k at a time, even with impeccable credit rating.

There is no way really of borrowing that way unless you look to some kind of ‘angel’ you’ll have to make monthly payments. Interest free credit cards best, I took one out for a new kitchen start of the year and a house refurb, got 25k across 3 cards easily didn’t use it all but the bulk is on a Sainsbury’s card 10k free for 3 years. Hsbc doing 15k loan at 3.3% atm with no early repayment fees. Depends what you need it for really.

To be honest it’s staggering how it is still so easy to run up debt, I’ve got the bank trying to sell me a personal loan, if I maxed out all the cards it’s debt I could never afford before putting another 15k loan on top…

Credit card – i have a cash back credit card and recently bought a property, i checked solicitor did not charge fees for credit card and maxxed out the limit.  They amasingly upped it to c annual Salary.

thanks, I’ll look into interest free credit cards though I’d prefer no monthly repayments.

it’s for building work so presumes tradesmen will take credit cards?

thanks, I’ll look into interest free credit cards though I’d prefer no monthly repayments.

it’s for building work so presumes tradesmen will take credit cards?

Everyone will want something back in the end.

Lowest rate options would be loan through bank with early repayment option, or to do something with a mortgage.

This is probably where a conversation with a bank/mortgage lender is useful, they will ask one question though…

If you can’t pay anything back now where is the £25k coming from in under a year.

It might be worth talking to your bank, nothing wrong with a 12 month loan with a single annual payment, it’ll be a tough underwrite though! This sort of thing is more standard in Business Finance which was my area.

CC would be easier, but as you’ve said their will be payments, I think 2.25% is more normal than 1% now?

it’s for building work so presumes tradesmen will take credit cards?

Most small traders I know take bank transfers but not cc as it is a pita so best to confirm.

If you want a big lump which you pay back in one go is not a traditional longer term loan. The rates of interest on that sort of thing would need to reflect the risk…

if it’s for building why not add it to the mortgage or talk the provider. I guess if you are building something on or near your house you need to let them know anyway. Not sure on that though

where is the £25k coming from in under a year

shares vesting, bonus, inheritance, ponzi scheme… which would be acceptable? 🙂

the building work is remedial work that needs doing to an extension so I’ll speak with the mortgage company too.

Probably none of the above!!

Look at early repayment fees on loans, might work out the best alternative if you are good for the credit. Just in case the Ponzi scheme doesn’t come off.

shares vesting, bonus, inheritance, ponzi scheme… which would be acceptable?

Most of them, well as long as they’re defined and guaranteed.

One of the worst answers would be “I want to put an extention on my house because Sarah Beeney told me, or rather someone on TV that it’ll add £50k to my house, or rather theirs and I plan to make a cheeky £25k when I put it on the market the moment the paint dries” or anything equally speculative.

You want to borrow £25K with no repayments for 12 months then pay it all back from an unknown source? Wish I’d got the money to lend. You sound like a safe bet.

Paypal gift?

I struggle with long sentences, but I can’t believe nobody can see the obvious way around the no monthly payments thing.

No got access to Excel to work out the exact figures, but….

Borrow £32k over five years.  Use the £25k for whatever it is you need it for. Use the remaining £7k to make monthly repayments for the first 12 months. Then give them the other £25k back at the end of the year.

You sound like a safe bet.

haha! I don’t want to give all my personal details away to randoms on the internet.

I could show a lender that I’m good for the money, it might just take a month or it might take 6 months. My horse has to come in at some point doesn’t it?

@thegeneralist that seems feasible – APR %s seem to go up considerably over £25k though.

having looked at one lender (Sainsburys), an arrangement like that would cost about £1,300 in interest in the first year then another £300 in early repayment fees. So £1,600 which doesn’t seem like a good deal.

I could show a lender that I’m good for the money, it might just take a month or it might take 6 months. My horse has to come in at some point doesn’t it?

Depends if the house is falling down? Wait for the National to be run and get the building done in summer 😉

Though certainly sounds like this is a conversation for the bank for starters, in person, don’t think there is a box for this on the online…..

So £1,600 which doesn’t seem like a good deal

I dunno, 6.5% with effectively no monthly repayments doesn’t seem that bad to me, or am I a mug?

I dunno, 6.5% with effectively no monthly repayments doesn’t seem that bad to me, or am I a mug?

Lol I think the OP wants the cash in a suitcase and then to give it back later, I reckon these 2 could probably sort you out

Just don’t miss the payment date

cash in a suitcase

I’m good for it, honest guv.

Someone on here wanted to invest £30k a week or so back, hit them up.

You could just do the remedial work in a years time.

@the-muffin-man it might be a demolition and rebuild job if I wait that long