Would you help in these circumstances

I just told my DP your story and he said as you’ve saved more than they’re asking to borrow surely you just give them it as thanks for the favour they did you and how much you saved! Alternative perspective

In this case it's relevant to know what your friend did for you, and it's relevant to know what they have asked for. Tough to say otherwise.

I certainly would do this. I’m very much about do favours where you can and I’ve found people have been very generous to me. I’ve lent money on 3 occasions and each time it was my suggestion as someone was explaining their predicament. None for what is describe as close friends. It just felt the right thing to do. I guess I judge people’s character, I think most people are decent and wouldn’t stiff someone on cash

it would be like if they gave me free professional advice out of their own time for a fixed number of years.

This is a big and valuable commitment. Many people are time poor..or they could have been giving time to paying clients

They showed up for you when you needed them and really helped you
You have been close friends for a long time and consider them trustworthy
You agree that a cash flow loan for them would really help them
They have offered T&C and interest.

I would , as suggested by a pp, put your DH in the front line of the agreement. I wouldn’t ask for interest but would say ‘what is the repayment plan and over how many years. I wouldn’t ask suggest monthly payments and no more than 3 years.

I’d do it OP.

If they spent their time and gave something akin to professional advice over a period of time, that would have otherwise cost you more than what you would be lending, I'd give it. If I don't get it back, I'd write it off as delayed payment for services rendered. That's me anyway. But since you say your friend has integrity, I would risk it.

If you refuse, you might lose the friendship anyway, since the friend will view it as a refusal after they did a "massive" favour for you.

I think if you could afford it without detriment to your plans and you trust your friend and your husband supports lending, I’d do it to help them out. One of our friends lent us a six figure sum, with interest payments applied so we could get on and build our house as it would have taken months to get a self build mortgage in place. We paid the interest he’d have earned on it each month and then once built and mortgaged, paid him back. We will forever be grateful for his trust and help, as it saved us a lot of time and hassle.

Edited to say cross posted with @SplishSplash123
If that is the case,I think it would be helpful to read this as part of your current research into making your choice. This website explains all that briefly and clearly.. https://www.moneysavingexpert.com/loans/

People have asked why don't they use interest free credit card (they could use it for part of the purchase cost) You mentioned credit card borrowing spiralling, but it is a good way to repay borrowing. It works if you keep up the repayments and don't use it for anything else. and if you buy something via credit card there is an amount of legal protection on the purchase. If one can't keep up the repayments then they shouldn't be making the purchase or borrowing from you anyway.

It depends how long she wants the loan from you for and how she wants to repay it. But using the above information from this website you'd be able to compare yourself what the friend is asking for an if her terms are reasonable.

If you have doubts about the loan and your DH is to busy and says just do it. It is a good idea to find out what normal loan repayment requirements are, if you are going to set up an agreement with them. There's probably a template on above website. I should stress that I am not a financial expert. That's all the advice I can think of.

F

For me it would depend on the thing

You can get ones for longer than a year usually, if credit rating is okay. You could then transfer the balance to another 0% balance transfer credit card just before the interest free period is up (there would be a balance transfer fee to do this, but then no interest to pay - the fee usually works out as less than the best interest rate you'd get elsewhere- say 3% for a balance transfer to 0% for 18 months). Money saving expert website is great at showing you options, and their credit checker facility let's you see if you have any guaranteed acceptance cards (which saves you getting a credit check for an application that fails).

Obviously there is always a risk that circumstances change and you dont have the ability to take out a new credit card to do the balance transfer. But perhaps you could offer to your friend that if they pay down as much of the balance during the 0% term and then can't get a balance transfer, you would then loan them the money to pay off the remaining debt on whatever terms you're currently considering offering them?

(Not a financial adviser, but I use 0% credit cards as a way to earn extra savings interest - because you can earn interest on the money you would otherwise have spent on the items you put on the credit card, so I am quite well versed in how they work and the fact they are such cheap debt that you can make money from using them.)

No I absolutely would not.

There are enough significant red flags here no matter how convinced you are that this friend is lovely (and fair play, they may well be) but that doesn't mean they arent irresponsible with money.

The fact they can't get a loan is ringing alarm bells for me.

OP I would only lend this money if you genuinely wouldn't be concerned if she doesn't pay you back and it would have zero affect on your friendship.

I know someone who rented their house out to a friend a few years ago (it was mutually beneficial - they'd just moved in with a newish partner and didn't want to sell straightaway; friend got a decent landlord and a fair rent) Their friend really took the piss, constantly late with rent payments etc which was very very difficult to deal with. They are no longer friends.

Be wary.

This Mumsnetter is saying, "Put it all down on paper, every little thing abut the loan, terms, etc. Get it signed and notarized. Then lend them the money."

How did they save you the money and what do they want to borrow it for?

Yes, but she could then obtain another zero-interest card. If she lets the debt spiral because she’s shit with money (what other reason could there be, realistically?) then that’s her problem. It’s not like the money is for anything essential.

Yeah, thanks but I'm already aware of the very obvious fact. Please read before correcting. Here is the post you replied to:

I'll add that, to me and among people I know, friends borrowing and lending money with other friends isn't really done. We all have families to put first, so it would seem pushy and kind of weird if someone asked. People might ask their parents for a loan, or else they'd get it from a bank or save up for what they want. The favor they did for you does complicate things a bit, though.

I’d be suspicious as to why they didn’t get a bank loan.
Im afraid I think this sounds like something that could potentially leave you up a gum tree and spoil your friendship. I’d say no.

Why cant they just get a loan?

I recenly borrowed £15k and the interest is £800.

It wouldnt cross my mind to ask a friend in order to save on that interest!

No, i know you feel obliged because of the favour- but it cost nothing, so it's nothing like lending a significant amount of money for something which isn't necessary.

If it's just a luxury, no.

I was thinking "absolutely not!" because in principle I don't think you should lend to friends. But it feels a bit different somehow.

If it's a significant amount for you, you could consider lending her part of the money. I wouldn't go above an amount you could afford to lose.

I would also advise to be 100% confident that she has the means to refund you. As well as get a legal agreement sorted of course.

If your good friend had saved you £10,000 and now wanted to borrow £6,000 then I would give her £5,000 and lend her the rest £1,000. That way you both benefit (£5,000 each saved), its easier for her to repay the £1,000, its fair and you keep your good friendship - which may be invaluable.

I don't understand why this is so difficult.

If you want to lend your friend the money, and I think you've made it clear that you would be happy to do so, then have a proper legal loan agreement drawn up to protect your investment.