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

[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

[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

[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.

[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.

[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!

[Johnny G Pipe]

OK, thanks for the ideas, and for the advice suggesting caution! I am lucky in that there is a back up plan if the property falls through.

I have stumbled on credit cards with 0% interest for 23 months - who knew. This has to be part of the answer to my problem I think! There doesnt seem to be a catch particularly..or am I missing something?

http://www.moneysavingexpert.com/credit-cards/best...

[Johnny G Pipe]

I am a decent earner with a decent credit rating as far as I know..I don't know what limits people can get these days, but whatever limit I can get that is going to mean less borrowed with interest and therefore less monthly payments.

[Johnny G Pipe]

Thanks for the tips, especially the tesco deal - I'm off to check if there is a repayment penalty.

Line of credit doesn't sound familiar in blighty..will have a google though.

walm said:

Just to answer one question OP.
The reason these loans don't really exist is because the bank needs to know very quickly if you are getting into financial strife and more likely to default etc.

Yes! I kind of ended up realising this. I might sound like I am taking big risks and unable to resist an 'unmissable' opportunity, but I am actually reasonably sensible and like I said have back up if I get in the sh*t. Like selling my 996 Turbo. But borrow-now-pay-back in 6 months is probably too tempting to many people's human nature, and would snag endless dreaming optimists who's big plans fall though. Not like me, no, really

Annoyingly the seller of the car won't take credit cards. I am liking the idea of a big long term tesco loan and then stoozing (get me, with the financial lingo) on an interest free credit card to overpay it in the short term, and then paying it off completely when my ship comes in, sorry I mean when the property sells. Hmm..