Bridging loan?

JaneBee_2

I need to take out a very short term loan to pay an inheritance tax bill but I'm finding it a total nightmare. Hopefully I'll only need the money for about two months maximum but have heard horror stories about huge fees. Does anyone have any knowledge/advice as to where to go for this type of loan. the cheap comparison sites all seem to focus on long term loans.

tommy_a

Get a credit card and pay bill using the card. Then pay off the credit card in full after 2 months.

jonesMUFCforever

tommy_a wrote:

Get a credit card and pay bill using the card. Then pay off the credit card in full after 2 months.

Never heard of HMR&C accepting a credit card payment.
If a bridging loan is needed it would suggest the bill is more than most people would have as a limit.

tommy_a

ejones999 wrote:

Never heard of HMR&C accepting a credit card payment.
If a bridging loan is needed it would suggest the bill is more than most people would have as a limit.

Pay using a cheque, which credit card co. offer you.

jonesMUFCforever

JaneBee wrote:

I need to take out a very short term loan to pay an inheritance tax bill but I'm finding it a total nightmare. Hopefully I'll only need the money for about two months maximum but have heard horror stories about huge fees. Does anyone have any knowledge/advice as to where to go for this type of loan. the cheap comparison sites all seem to focus on long term loans.

Most banks will charge an arrangement fee of between 1 and 2 % plus will want security in the form of a mortgage over a saleable asset ie your home in most cases.
I would imagine that your existing bankers would be your only port of call as the amount of work needed to secure a B/Loan would not make it attractive to anyone else.

I'm sure that you have already explored the possibility of all liquid assets being cashed with the cheques made payable to HMC&E to cover part of the liability. Most banks will do this to help you to get Probate.

If your bank do not want to know the only way round is to perhaps ask your solicitor to 'borrow' the money in their name (you would have to pay all their charges to set it up) and repay them with interest from the estate.I would imagine that they would only be prepared to do this if they have done the work on the estate in the first place.

JaneBee_2

Thanks for the advice. Yes getting as many assets as possible paid direct to the revenue but looks like there'll still be a shortfall of about £30K which is too much to pay with a credit card I think.

Will investigate my local bank's options. Have got a quote from a website broker but it is alarmingly expensive although that might just be my lack of experience at arranging loans.

jonesMUFCforever

JaneBee wrote:

Thanks for the advice. Yes getting as many assets as possible paid direct to the revenue but looks like there'll still be a shortfall of about £30K which is too much to pay with a credit card I think.

Will investigate my local bank's options. Have got a quote from a website broker but it is alarmingly expensive although that might just be my lack of experience at arranging loans.

Please don't do website brokers they will just shaft you for an arrangement fee - and then you will have to pay fees as I have outlined anyway.
Contact your bank.