Small Mortgage Help

guilds

My Sister plans to down size and move nearer to me, she has a small pension of £200 a week, her mortgage is £28000 with 9 years left on her current home, the new property requires a mortgage of £14000 she has savings but does not want to leave herself short, the ltv is very small at 8% the problem seems to be the minimum amount the lender would lend her which is £25000 which is double what she needs, how is the best way to fund this move? thank you in anticipation.

Kind regards Guilds

Jimbo1976

2 options spring to mind

1) She borrows £25,000 but makes sure that she takes out a rate without penalties (some lenders offer these), so on completion she can pay back the £11,000 she does not need.

2) She takes out an offset mortgage and puts the £11,000 she does not need into her savings account.

Both of these assume that she can get a mortgage for £25,000.

Speak to a broker, they will be able to help

_Andy_

Borrow £25k and overpay. Worth speaking to a broker though as the income may fall under the minimum for many lenders.

getmore4less

Look at porting the existing loan.

Some lenders go much lower.

First direct have said £10k before may still do(calculator will do £10k but not £9999)

guilds

Thank you for the good advice, I am trying to convince her to let me soft loan her the money, but she is a proud old stick, me being 15yrs her junior she is more used to looking out for me and finds it hard to accept help.

kind regards Guilds