How to borrow 20k for 6 months only and repay in full?

[Johnny G Pipe]

I thought this would be straightforward and am embarrassed to turn to the forums!..But how can I borrow 20k now, and pay it back in full 6, months later plus interest - with no monthly payments in between? I can't afford monthly payments but will have access to the money in a few months. But I need it now.

Everything I can find is monthly payments, closest I can get is the ones with deferred starts, or the payday lenders. Am I best extending my mortgage? Or am I missing something obvious..?

It is to buy a car of course

Edited by Johnny G Pipe on Saturday 17th January 22:30

[Simpo Two]

Well, why should I lend you £20K for half a year and get no return when I could be getting 5% if invested? That makes me a sponsor not a lender!

And you don't need a £20K car now.

[williaa68]

Borrow more for longer and then repay early - eg 23k for 5 years will be about £450 a month with a good credit rating. The extra 3k will cover the interest for 6 months. Makes the credit expensive though as there may be early repay,emt charges.

[Johnny G Pipe]

Hey thats a good idea -quite a few allow repayment early from memory.

I still don't get why I can't borrow for 6 months, pay no monthly payments, and repay a lump sum with interest. What am I missing?

What about extending my mortgage for a short period of time?

Edited by Johnny G Pipe on Saturday 17th January 23:04

[RichB]

williaa68 said:

23k for 5 years will be about £450 a month...

Chap said he doesn't want to pay a monthly amount. Have I missed your point?

[Johnny G Pipe]

Yes I did say I didn't want to repay monthly - because it would be too big over 6 months.

I didnt want a five year loan as the cost of the loan is too big - and I don't need 5 years.

But I could manage £450 a month for 6 months and then repay the whole lot early. Have found that Zopa have no early repayment fee for example, maybe this is the answer! Whats the catch apart from slightly higher cost?

But the basic question remains - a simple borrow now, repay in half a year with interest. Why is that so hard to find?

Edited by Johnny G Pipe on Saturday 17th January 23:20

[marshalla]

Radical idea - wait 6 months, then buy it and avoid interest payments altogether ?

[Johnny G Pipe]

marshalla said:

Radical idea - wait 6 months, then buy it and avoid interest payments altogether ?

Simple - Its a classic car that I really want, that I have the chance to buy now, but it won't be there in 6 months, or even a couple of weeks I expect. Its actually a slightly long story. But its not a used Volvo I'm buying here..it won't wait.

[djglover]

Can't you get a credit card and transfer the balance into your bank account. There will be the minimum payment but should be minimum. That's how I funded my last car...

[Johnny G Pipe]

I have good income and credit, can I get a £20k limit on a credit card? I don't use them much, last time I looked my barclaycard limit was about 7k. Wonder what a credit card works out as total cost of credit for that amount…too late for my brain to work, I'll look into it tomorrow.

Thanks for the replies chaps, I might be getting somewhere! I'm off now, back in the morning. Cheers.

[Jakg]

RichB said:

hap said he doesn't want to pay a monthly amount. Have I missed your point?

Borrow £23k, and you have £3k more than you "needed". You can then use the £3k to pay the monthly payments for 6-7 months before you are able to clear the full balance.

[e600]

Anything you could pawn?

[Petrus1983]

A bank overdraft is effectively a loan without needing to be repaid at any fixed time/amount and £20k isn't beyond the realms of possibility depending on your situation, so I'd start there.

Failing that I agree with the poster above - borrow slightly more over 7 years (to reduce monthly payment) and then pay it back. This only works if you check and re-check there's no early redemption penalties. (Or if there are they're factored into your costs).

[MagicalTrevor]

Jakg said:

Borrow £23k, and you have £3k more than you "needed". You can then use the £3k to pay the monthly payments for 6-7 months before you are able to clear the full balance.

I was also about to suggest this, so +1

[RichB]

Jakg said:

RichB said:

hap said he doesn't want to pay a monthly amount. Have I missed your point?

Borrow £23k, and you have £3k more than you "needed". You can then use the £3k to pay the monthly payments for 6-7 months before you are able to clear the full balance.

Ah ha, yes I hadn't thought of it that way !

[Driver101]

Doesn't the bank have to do affordability checks these days before lending someone money?

Surely someone wanting to borrow £20,000 and not even have the means to pay one monthly instalment would trigger alarms for them?

[LaurasOtherHalf]

Just borrow £23k and use the extra £3k to pay the repayments for the first 6 months and then clear the debt.

[CzechItOut]

Johnny G Pipe said:

But the basic question remains - a simple borrow now, repay in half a year with interest. Why is that so hard to find?

My guess would be that banks don't offer this, as so few people would want it. Most people would just wait six months to get the money in their hands.

[Johnny G Pipe]

Driver101 said:

Doesn't the bank have to do affordability checks these days before lending someone money?

Surely someone wanting to borrow £20,000 and not even have the means to pay one monthly instalment would trigger alarms for them?

Good morning! Its just repaying it all within 6 months (£3.3k monthly repayments, yikes) I can't do. However after 6 months (when a property transaction has gone through) I can pay it all back easily. Hence my frustration about the insistence on monthly repayments.

I can also afford smaller repayments spread over much longer and then pay it all off early. Which seems to be the answer..thanks PH friends!

[Eleven]

Johnny G Pipe said:

I thought this would be straightforward and am embarrassed to turn to the forums!..But how can I borrow 20k now, and pay it back in full 6, months later plus interest - with no monthly payments in between? I can't afford monthly payments but will have access to the money in a few months. But I need it now.

Everything I can find is monthly payments, closest I can get is the ones with deferred starts, or the payday lenders. Am I best extending my mortgage? Or am I missing something obvious..?

It is to buy a car of course

Edited by Johnny G Pipe on Saturday 17th January 22:30

Where exactly is the money coming from to repay the loan?