Need to fund 30k gap between sale / purchase - cheapest option

jase_31

We are selling a property we inherited. We are also put an offer in for new property (will be BTL) for the same amount.

The new property is a repossession, and complete needs to be made within 28 days. At the moment it looks like the purchase will need to go ahead before completion of the sale.

We have about a 30k shortfall to finance the purchased. What is the cheapest way to bridge this gap. I have looked a mortgage, but with the arrangement fees etc it is probably not cost effectivef or such a short term. When the sale complete, the funds will be available to repay the mortgage

mlz1413

The options as I see them are :
1 don't buy another property until you have sold inherited home

2 bridging loan - not cheap

3 loan, this is will be personal and probably securied against your home so ensure you can afford monthly payments and if it can be paid off early

4 credit cards - big risk if your inherited property falls through

5 mortgage against your current home - ensure you don't get a fixed rate or term so it can be paid off early.

dgl1001

jase_31 wrote: »

We are selling a property we inherited. We are also put an offer in for new property (will be BTL) for the same amount.

The new property is a repossession, and complete needs to be made within 28 days. At the moment it looks like the purchase will need to go ahead before completion of the sale.

We have about a 30k shortfall to finance the purchased. What is the cheapest way to bridge this gap. I have looked a mortgage, but with the arrangement fees etc it is probably not cost effectivef or such a short term. When the sale complete, the funds will be available to repay the mortgage

you need a briding loan - very expensive

Pepzofio

jase_31 wrote: »

The new property is a repossession, and complete needs to be made within 28 days. At the moment it looks like the purchase will need to go ahead before completion of the sale.

Does this mean you will have exchanged?


If you've exchanged on the inherited property can't you just ask the repossession company if they'd be able to wait a couple of extra weeks? I'm sure I've heard of people doing this with repo's, and surely the fact that you've exchanged should give them a reasonable guarantee that you're good for the money...? Otherwise they're just going to have to start the whole ball rolling again with advertising it and waiting for offers etc.