Friend asked dh for 2 year loan

To pay back in 2 years means monthly installments in excess of £1000.

Does your DH seriously believe this family have a spare £1k every month to pay him?

I'd feel physically sick at the thought of my DH being taken for a financial fool.

Please please ensure your DH gets something in writing at the very least so he has some legal fallback should the repayment not materialise in full.

He is never going to repay it. If he can't afford his lifestyle now, then how is he going to afford to maintain it and repay a huge loan?! It's never going to be repaid. I'd tell husband not to do it. They'll end up falling out.

Yeah....you really, really should tell her

Not a chance I would be condoning this. I would also 100% tell his wife and check the story of the sudden repayment with the other friend. This is business and you can't be too trusting.

you need to put a stop to this now.
And your DH needs to tell his friend that there will be no money and that he should tell his wife, it affects her life too.

In your shoes, OP? i'd be disentangling any financial commitments with partner, maybe consider something legal to make it very clear and final (i guess that means divorce?)

It’s kind of your DH to offer, but let’s face it, the friend is only putting off the day of reckoning. He needs to face up to his financial problems, firstly by telling his wife and then working through things. Your husband won’t be paid back. Not a chance.

I would tell DH and the friend you are going to tell his wife if he doesn't. No way would I keep quiet on this

Owes £25k to a friend who now needs it back

So he’s borrowing from Peter to pay Paul,
how did he get into this situation with Paul and why wasn’t he able to pay him back in instalments before it got to this?

Is your DH’s friend a high earner? Does his wife work?

Do not lend money to anyone ever ( unless family and you want to do it )
Your husband is valuing the feelings of his friend’s wife over your feelings. They have several children and she doesn’t work but has a lovely lifestyle? They’re living beyond their means. I’d tell the wife now tbh. They won’t be able solve this unless they’re both working on it together.

I think you should tell his DW. Your DH loaning him won’t stop his spending/gambling/addiction & if he’s scared to tell her about the £25k it’s clearly not them living beyond their means bcos she’d know about that. He’s hiding a money problem & your poor DH will be easier unfortunately to default. Not easy I know.

My DH has a wealthy friend who does personal loans as a side business to people he knows. He adds interest and creates an email based contract. We've borrowed money in this basis previously. If you need to change terms, extend the loan or reduce payments, take a payment break etc then its a conversation the same as with any other lender and terms change, interest is added etc He expects the money back and its all very clear as to what the agreement is.
I think it's ok to lend, but properly, with interest (less than a bank if preferable) and payment terms, penalties clear and with contract. Just a willy nilly handing over of 25 grand, then expect not to have it paid back

Is there anyway to verify this story about other friend needing money back? Surely when that loan was given that friend would know that he doesn't have the money to return. Has he not been paying in installments?

I would put my foot down and say no. How can he even begin to say yes. Tell him to ask a bank.

You also can’t know for sure he doesn’t have a gambling problem etc

What a joke borrowed from own friend and now asking another! I would tell his wife.

This is tough OP. Honestly this smells of gambling which is one of the most insidious addictions. I think his wife deserves to know.

Aside from all the obvious pitfalls to this - I have my own company and withdrawing that kind of money over and above the income/dividend limits would attract a significant amount of tax. Plus my accountant just wouldn’t let me because it would be fkg stupid and she’d tell me that I might as well burn it. Hope that helps.

And if she doesn’t know about this debt she’ll continue to think all is fine and continue to spend money they clearly don’t have! She NEEDS to know.
As for no drugs/gambling problem and has a big family to pay for how will he afford £1,050 a month for the next 24 months if he’s struggling now?

It’s easy to spend money you HAVE. Hes been spending money he doesn’t have. Thats nothing to do with having kids and everything to do with being financially irresponsible.

How does this friend even know you and your DH have £25k to loan?

It's would be a huge no from me

Is he going to put a written agreement in place? Is the friend going to be liable for the tax liability if he doesn't pay on time? Is it secured in any way - on the friends car [if owned outright or similar]

Unless your husband can afford to be down £25k at the end of the borrowing period it's a bad, bad idea.

No make sure your husband DOESN'T GIVE THIS MAN £25,000.

I suspect that friend 1 has been observing the same lifestyle choices that you have observed and has had enough in that case…

Tell her. Today.

No way. I’d wager that the friend who now needs the 25k back was also expecting it within a reasonable time and your DH’s best friend hasn’t paid. Sure you might get a few repayments in the beginning but just watch, he will ask for a few more days, then wait until pay day, then something else and you won’t get it all back.

Dont lend money you aren’t prepared to give away.

🤣🤣🤣🤣

Of course he did.

Obviously it wasn't because this guy wasn't paying back in good time... Obviously he was diligently paying back the money every week/month....

Otherwise,is he saying he borrowed MORE than £25k off a friend... Why does he need that much money? If it's funding a lifestyle (he's got kids) then that's a another reason not to lend to him.

You have to assume this is essentially a gift to the chancer.

What evidence do you even have that he owes another friend £25k+?

No, if he couldn’t afford to pay the first person back how will he afford to pay you back? Don’t do it.