Loan agreement

Person to person; property purchase
2 Reviews
Select support levelCompare

Document overview

Use this document to lend money to family or friends for the purpose of helping to buy a house or flat, or for a renovation project.

The loan can optionally be secured on a guarantee by a third party.

Compliant with the latest law in
  • England & Wales
  • Scotland
Document propertied
Document properties
  • Length:8 pages (1800 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
watertight guarantee
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

writing in plain english
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

Support from our legal team

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this document

Use this agreement to record a loan where the money will specifically be used to buy, renovate or refurbish a property. It can be used for lending to one or more people jointly.

Even when you trust the person to whom you are making the loan to repay you in full and on time, with such a large amount being lent, you should record the agreement in writing. By using this document, you should avoid confusion about whether the money was a gift or a loan, when the money should be repaid and with how much interest.

The agreement includes the option for a third party, such as another family member or a company to guarantee the debt.

It is suitable for situations such as:

  • lending to a family member and his or her partner to use as a deposit for a house or flat

  • lending to a family member to pay off a mortgage

  • lending to a friend for property renovations

Either party may be abroad or in the UK, and the loan can be of any size.


If you would prefer to use a simpler agreement, see loan agreement template for lending to friends and family members.

Unfortunately we are not able to sell a document that secures the debt against the property - such a charge is a restricted activity under law and requires a solicitor. Additionally, in many cases, doing so would break the terms of any mortgage agreement.

If the borrower has other assets, such as a share portfolio or possessions of value, you may like to use these as security instead.


  • Definition and purpose of the loan

  • Relationship and status of the borrowers

  • Borrowers' warranties

  • Sum of the loan and advances

  • Repayment conditions

  • Interest payable

  • Early repayment

  • Method of payment

  • Provisions covering default (non-repayment)

  • Assignment (transfer of obligations to repay)

  • Guarantor and guarantee

  • Miscellaneous legal matters

Sample loan agreementSample page from the property loan agreement

CallTalk to us about this document

We are happy to answer any questions you have. Arrange for us to call you.

Recent reviews

Peace of Mind Gained
07 October 2023
The initial document was clear and understandable but did not exactly fit our needs. However we amended it as best we could, then decided to use your review service to make sure it was still legal and to clarify some uncertainties. The reviewer was excellent, very fast and helpful, and within a couple of days we had a document which was ideally suited to our needs. Overall, we felt that the price paid was excellent value.
John Buckingham
Simple and helpful
25 June 2014
Simple and straightforward.Needed a clear easy to edit doc to help me draft an agreement - did the job
Bob Dudley

Choose the level of support you need

Document Only

Complete the document template yourself using our guidance notes
(incl VAT)
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
Most Popular

Lawyer Assist

Support from our legal team during and after editing
203 Reviews
(incl VAT)
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
  • okUnlimited email support - ask our legal team any question related to completing the document
  • ok
    Review of your edited document by our legal team including:
    • reporting on whether your changes comply with the law
    • answering your questions about how to word a new clause or achieve an outcome
    • checking that your use of defined terms is correct and consistent
    • correcting spelling mistakes
    • reformatting the document ready to sign


Drafted for you, to your precise requirements
(incl VAT)
  • okA document drawn just for you to your exact requirements
  • okPersonalised service provided by an experienced solicitor
  • okFree discussion before we provide an estimate, for you to ask questions and for us to understand your requirements
  • okTransparent fees - a fixed fee for the basic work, a fixed hourly rate for new or changed instructions, and no charge for office overheads or third party disbursements
  • okCareful and thorough consideration of your circumstances and your consequent likely practical and legal requirements
  • okProvision of options that you may not have considered with availability for discussion
  • okHelp and advice woven into the fabric of our service so that you can make the best decisions
© 2000 - 2024 Net Lawman Limited.
All rights reserved