interest free bidge loan

KGPUMPS

Hi,

just vthought I would mention that when we took out our latest fixed mortgage deal we wanted to pay a lump sum of £20000, but our cash was tied up in an investment account with 21 days notice.

the solution was to take a std loan out from Nat West for £20,000 and use that straight away to reduce our mortgage. When we got our cash 21 days later from our investments, we cancelled the loan outright repaying the 20,000 in one go, FREE. You have to read the loan small print, and find out the EXACT way to cancel, who to, time frame and in writing.

If we would have missed the cancellation date then we would have paid 1 months interest charge of £125, but this would still have been worth it.

cake21

Thanks KGPUMPS.

Sorry for what is possibly a silly question but I'm not sure how it all works. Did you have to declare that the NW loan had (very temporarily!) funded your deposit to the mortgage provider? Or was it a moot point because you had the £20k in an investment account?