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    • laurab2306
    • By laurab2306 12th Sep 17, 1:22 PM
    • 2Posts
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    laurab2306
    Short Term Mortgage or Bridging Loan
    • #1
    • 12th Sep 17, 1:22 PM
    Short Term Mortgage or Bridging Loan 12th Sep 17 at 1:22 PM
    My mother has recently passed away and I have inherited 50% of her estate.
    The family home is on the market and Probate is in the process of being granted.

    My own home is also on the market and I have found a property that I would like to purchase.
    There is around £150K difference in price between my home and the house I wish to purchase.

    My question, I intend that once my mothers house is sold to be Mortgage free. There is an Early Re-payment charge on my current mortgage which is 2% of around £190k.

    However in the short term I need to find the £150k difference in order to purchase my new property. Would I be better off with a Short Term Mortgage for the additional amount, or should I apply for a bridging loan to complete the purchase and then pay this off along with my existing mortgage once my Mums house has sold?

    I hope that this makes sense!
Page 1
    • getmore4less
    • By getmore4less 12th Sep 17, 1:33 PM
    • 30,248 Posts
    • 18,088 Thanks
    getmore4less
    • #2
    • 12th Sep 17, 1:33 PM
    • #2
    • 12th Sep 17, 1:33 PM
    port your current mortgage over to the new property wait to be ERC free then pay it off with the inheritance.

    Not clear, do you need £150 on top of the free equity on your current place on on top of the sale price with a £190k mortgage

    if you mean the new place is £150 more than the current one with £190k mortgage then you will need to borrow £340k

    Will your current/any lender do that.

    Any money in the estate to get an interim payment before the house sells.
    • laurab2306
    • By laurab2306 12th Sep 17, 3:08 PM
    • 2 Posts
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    laurab2306
    • #3
    • 12th Sep 17, 3:08 PM
    • #3
    • 12th Sep 17, 3:08 PM
    Thank you for your response, basically if my house sells I will be around £100k short to purchase the house that I want to buy but only until the house sale money comes through.

    With my salary I should be able to increase my mortgage by £100k however this would have to be done on a "new" mortgage, which I don't really want to take out due to the ERC. Realistically I would only require this for a couple of months whilst the house sale goes through, hence my question about a Bridging Loan instead. However I don't know much about these
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