- 1Complete online Intentions Form
- 2Proof of ID Scan an in date passport or driving licence
- 3Proof of Address Scan 2 copies of your address within the last 3 months such as a utility/mobile phone invoice or bank statement
- 4Agreement We draft the loan contract and send to you for your approval. This service is available at a Fixed Fee of £499 INC VAT, or £599 INC VAT for a commercial loan from a company. If you wish to add any additional clauses or tailor the deed then our solicitor can help and will agree an additional fee with you for doing this. We will charge extra for material changes to the original intentions. We will draft the agreement based on your intentions and offer one free revision. Should you look to change your intentions, supply incorrect details or you require a bespoke service then our solicitor will charge for this work on an hourly basis of £420 INC VAT.
- 5Register Loan Agreement For an additional fee of £260 INC VAT we can register the agreement against the borrower's property for you. If there is already a first charge, such as a mortgage, then make sure to get lender consent to the second charge before instructing this service.
Standard loan agreement or bespoke drafting?
Do I need a personal loan agreement between friends?
Loan Agreement Solicitors – Tailored, Enforceable UK Loan Contracts
When you lend money — whether privately to family, friends, or as a commercial investor — a formal Loan Agreement protects your interests, clarifies repayment terms, and strengthens enforceability under UK law. At Parachute Law, our expert solicitors draft bespoke loan contracts that are clear, legally robust, and tailored to your needs.
A well-drafted Loan Agreement reduces uncertainty, prevents disputes, and gives both borrowers and lenders confidence in their financial arrangements.
What Is a Loan Agreement?
A Loan Agreement is a legally binding contract between a lender and a borrower that records how money will be loaned and repaid. It sets out:
- The parties involved (names and legal capacity)
- The amount loaned and purpose
- Repayment terms and schedule
- Interest (if applicable)
- Security or collateral arrangements
- Default and enforcement provisions
- Governing UK law and jurisdiction
Loan Agreements are used in many contexts — from private loans between family members to business funding arrangements and property-backed loans.
Why You Need a Professional Loan Agreement
Even informal loans between friends or family can lead to misunderstandings or disputes if terms are not clearly set out. A properly drafted agreement:
- Creates certainty about repayment terms and obligations
- Protects your legal rights if repayment issues arise
- Reduces the risk of dispute or litigation
- Strengthens enforceability in court if needed
Without a formal agreement, proving the terms of a loan and enforcing them can be difficult and costly.
Secured vs Unsecured Loan Agreements
Secured Loan Agreements provide additional protection for lenders by tying repayment to collateral, such as property or other assets. If the borrower defaults, the lender can enforce the security to recover the debt.
Unsecured Loan Agreements do not include collateral. These rely on the contract terms alone and are often used for smaller or personal loans.
Both forms require carefully drafted legal wording to be effective.
What Parachute Law’s Loan Agreement Service Includes
Our solicitors will:
- Discuss your objectives and tailor the agreement to your situation
- Draft a clear, enforceable loan contract based on your instructions
- Include essential legal provisions to protect both parties
- Advise on security interests and legal implications
- Ensure the document complies with UK contract law
We can draft agreements for:
- Private loans between individuals
- Property-backed loans and second charges
- Commercial director or business loans
Your Loan Agreement will reflect your intentions in precise legal terms — helping prevent future disagreements and protecting your financial interests.
Key Elements of a Loan Agreement
To rank well and inform users, it’s crucial to explain standard terms included in enforceable loan contracts:
1. Loan Amount and Repayment Terms
Specifies how much is lent, when repayment is due, and how payments are made. Detailed schedules reduce ambiguity.
2. Interest and Costs
If interest applies, the rate, calculation method, and payment frequency should be clear. This is vital for legal enforceability and transparency.
3. Security or Collateral
If a loan is secured, the agreement should specify the collateral and how enforcement works in default.
4. Defaults, Remedies & Enforcement
What happens if the borrower fails to repay? A strong agreement explains consequences, repayment acceleration, and dispute procedures.
5. Governing Law
Specifies that the contract is governed by English law and subject to UK courts — crucial for enforceability.
Including these terms helps users and search engines understand the complexity and importance of professional drafting.
Why Use Parachute Law for Your Loan Agreement
- UK-based solicitors experienced in lending and property matters
- Clear, practical advice on both secured and unsecured loans
- Contracts drafted with enforceability in mind
- Support through signing and execution
We work with lenders and borrowers alike (acting independently for each party) to ensure your legal interests are protected.
Get Expert Legal Support
Protect your financial arrangements with a professionally drafted Loan Agreement. Contact Parachute Law today for expert guidance and contracts that safeguard your interests.
