Best way to borrow £27k for only one month

moneybunny123

I may post this in a few forums, as I'm not really sure where and how to go about this....

I am paying off the developer who owns a 25% share in my house. The settlement is £27k and they want this on or before end of June.

I'm in the process of selling another property, and completion is due to take place on 1st August, when I will have enough funds released to pay this £27k off. BUT....if the developers wont wait until then (I'm still waiting to see if they will) what is the best (and obviously cheapest) way of borrowing £27k for just five weeks? Obviously I don't want to incur early repayment charges, hence why I'm not remortgaging.

Thanks in advance.

ILW

Your bank?

moneybunny123

What, you mean as a temporary overdraft? Or a 5 week loan? Any ideas what fees/interest this may incur?

JamesWMH

Can you get a smaller loan? Say a few thousand as a deposit to the developer to keep him happy, and then the full amount when you can?

rob_wiltshire

moneybunny123 wrote: »

I'm in the process of selling another property, and completion is due to take place on 1st August, when I will have enough funds released to pay this £27k off.

Have you already exchanged contracts on the house you are selling? If this is not the case it would be prudent to also take into account the possible implications of the sale falling through when deciding which route to take.

moneybunny123

rob_wiltshire wrote: »

Have you already exchanged contracts on the house you are selling? If this is not the case it would be prudent to also take into account the possible implications of the sale falling through when deciding which route to take.

Unfortunately not, no. We will be exchaning and completing on the same day (1st August) due to other implications (which are too complicated to go into here).

If our sale fell through, we'd probably know sooner than then anyway, in which case we'll just remortgage our house to raise the funds. I've been told by the bank that they can do this within 3 weeks.

Mallotum_X

Speak with a mortgage advisor... and get a mortgage on the place you are buying.

Emmzi

talk to your bank about bridging finance

nomoneytoday

AFAIK unfortunately prime rate bridging loans seem to have almost disappeared.
Nationwide and Halifax don't do them for example

There are some available online, but around 1% a month, so will add up charges rather quickly

HappyMJ

nomoneytoday wrote: »

AFAIK unfortunately prime rate bridging loans seem to have almost disappeared.
Nationwide and Halifax don't do them for example

There are some available online, but around 1% a month, so will add up charges rather quickly

£27,000 @ 1% per month is only £270 per month. A small amount for short term finance. And it's only for 5 weeks.

bengalknights

HappyMJ wrote: »

£27,000 @ 1% per month is only £270 per month. A small amount for short term finance. And it's only for 5 weeks.

So about £300 for that amount of borrowing which is a good deal if available.