Best way to borrow 100k for a maximum of a year

anselld

Assuming LTV, income, etc support it you could apply for an offset mortgage of £100k on the property. (eg 2.39% offset tracker, £99fee, First Direct) Then, when you have recovered the money from sale just place £100k to fully offset the mortgage. You would then not be paying any interest but you would still have access to £100k drawdown of capital in future should you need it (or some of it) for anything else.

ViolaLass

Thrugelmir wrote: »

A lender will care because the loan is short term and therefore not profitable. Banks make money out of mortgages by lending for the longer term.

I meant why would they care that the OP already owns the house outright and hasn't had a mortgage on it before.

Mrs_Dunbar

wow. thanks for all your replies. You are right I can get a remortgage, a huge relief. Have found a 2 year ofset tracker with no ERC. £99 arrangement fee. £149 closure fee and £180 valuation fee. 1.89% above Base rate = 2.39% at the moment. Goes to standard variable after 2 years, currently at 3.69%.

Think this is a good option because I will be using the money for building works. These renovations need to be paid in stages so can keep some of the money in the ofset account till it is needed.

I know 3 months doesn't sound like a long time and haven't done any work on this scale before but have rung several people who have used this builder and all works were completed within the builders estimated time frame, he told me 8 weeks and i am thinking 3 months just in case.

thank you for the response you have bben so helpful. Hope you all have a merry Christmas and great new year. You have relieved a lot of my stress!

anselld

Mrs_Dunbar wrote: »

wow. thanks for all your replies. You are right I can get a remortgage, a huge relief. Have found a 2 year ofset tracker with no ERC. £99 arrangement fee. £149 closure fee and £180 valuation fee. 1.89% above Base rate = 2.39% at the moment. Goes to standard variable after 2 years, currently at 3.69%.

Sounds like First Direct. Good choice, very flexible.
If so I think you will also need a First Account - make sure you get the £100 switching bonus which will pay for your arrangement fee!

Also, given you have already bought the property, they do a "drive by" valuation for £99. No point paying the £180

Mrs_Dunbar

As we have never had a mortgage on the property they said they wont do the drive by valuation but we can get the £100 switch money.

anselld - many thanks for this advice.