to not want to be a guarantor to a loan that DW's friend and husband want to take out.

[BreakingDad77]

I am aware they are not good with money (Im not amazing but are not anywhere near CCJ/default) and already have court collections on money they own. They need this to bridge the time till the DW friend goes back to work after maternity leave, supposedly they are short for rent and need 5-6k.

DW says we not at risk but I have told her that I believe that say they default then they would come after us and because we wouldn't be able to manage that extra then it would get put on our house.

I dont like the idea of money between friends like this.

There's a reason no one else will lend them money, without having a guarantor. They are high risk. Unless you want to give them 6k say no, sorry we are not in a position to loose it.

Friends and money do not mix.

Another voice here adding to the chorus of "don't do it!"

YADNBU, and they are being VU to put you and your DW in this position. Don't let them guilt you into agreeing to it. There are enough true stories here about when it's gone wrong to put you off.

To wheel out the old MN adage, "No is a complete sentence."

Just give them a cash gift and avoid the hassle. If you don't have £5-6k hanging around with nothing to spend it on then you'll have to politely decline.

No. Just No. Completely No.

No don't do it, I wouldn't even accept my parents offer to be my guarantor once, I looked for other options.

Friends and money are bad combination, when they are in debt the friendship money priorities will be at very bottom of list. You will be signing up to say should they default you will pay.

Not flaming likely.

On top of what everyone else says, if they're risky enough that the bank don't trust them then even with a guarantor they will probably be paying a very high interest rate which you would be liable to cover. The loan might be 5k but the repayments could total a lot more. Your credit rating could be knobbled so you'd be struggling if you ever want to move.

Not at risk?! Um, does your DW understand what the word 'guarantor' means?!

Yes you are at risk. If they fail to pay it back, the loan company will take the 6K from you instead. You will lose your money and lose the friendship. They'll keep the money and lose the friendship...

If you do this for people who already have court judgements against them for defaulting, you are INSANE.

Part of being a guarantor is providing your bank details. They don't pay and the money will be taken from your account, it's what you are agreeing to.

If they're shit with money then knowing they have a safety net in you is probably more likely to make them not pay their rent.

Walk away.

Why is dw even considering this?

If these so called friends have given your wife the impression that you are not at risk by becoming guarantors they are lying to you already and preying on her naivety- doesn't bode well does it?

wow. unanimous YANBU.

Dont do it. Guarantor means you guarantee to pay the money back. the lender must at least suspect they wont pay it back which is why they are asking for a guarantor in the first place.

Don't do it. At all. Ever. Under any circumstances

You answer the question yourself. You don't have the money, you can't afford to lose it so you don't do it.

Your wife is being bloody stupid if she thinks there is no risk to you.

No don't do it X a million.

Really, don't do it. It would be a daft thing to do.

Read some of the stories on MoneySavingExpert 'loans' topic. There is a section on lending to friends and family. It NEVER ends well.....

It sounds to me as though this "friend" has assured your dw that there's no risk involved, why else would she think there wasn't?

I wouldn't touch this with my friend's barge pole, let alone mine.

Don't do it. My friend asked the same a few years back. They had all sorts of money problems and there was no way I could be sure they would pay.

The other thing to consider is what happens if the husband loses his job and can't pay.
Basically unless you can afford to pay the money don't do it

No.

You'd be better lending them the money direct, at least then you could charge interest and wouldn't be guaranteeing their interest.

But I wouldn't do that either.

I hope your DW is good looking, because she's clearly isn't smart...

I would ask your wife why she thinks there is no risk because it's obvious there is!

That's a little cruel, NotDavidTennant. OP's wife sounds kind-hearted and generous, which is not the same thing as stupid. She wants to help out her friends who are in a fix, and hasn't thought through the ramifications yet. Luckily for her she has a cautious DH and the wisdom of Mumsnet.

OP, I think if they're good friends, you can absolutely give them a gift card to their local supermarket or similar on occasion, provided you can afford it. Free up some money for the rent. But you definitely want to stand firm on not being a guarantor.

You would be mad to even consider it.

Noooooooo!

If they default, it's you who'll be paying it back. If they're that shit with money, they'll let you down, I can almost guarantee it.

Absolutely no.

You have said yourself they are not good with money so what makes you think they would be good at repaying this loan? This will only end one way. My dad always said never lend money to anyone and he was right because 9 times out of 10 it always ends badly.

I would NEVER do it - not in a million Sundays.

Just recently, my DH purchased (with a loan) a car. The first source of financing the dealer approached said they wanted a co signer. DH said flatly that he would not involve another person in his finances that intimately - he was that Adams not to involve a co signer.

The dealership went to a different bank and not only got the financing, it was at a lower interest rate.

My gut feeling is that your DW's friend's credit record might actually have dragged down another cosigner in the past - you are right in not wanting to be the next victim.