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Interest-only Remortgage, to raise £200k?
2rockfarmers
Posts: 2 Newbie
New here, so i do hope you lovely folk can help!
My parents (both aged 71) want to invest £200,000 in my business, ASAP! They have a property worth £800k and plan to sell it this summer, downsizing to a property worth £400k.
Could they temporarily re-mortgage their current £800k property on an interest-only basis for £200k, in order to raise the investment funds quickly? Then pay the balance back once they have sold the house?
I appreciate this scheme is full of potential pitfalls, but might it work in principle? Does such a mortgage product even exist?! They are retired, but have decent pension incomes of around £45k.
Thanks so much if you can help
My parents (both aged 71) want to invest £200,000 in my business, ASAP! They have a property worth £800k and plan to sell it this summer, downsizing to a property worth £400k.
Could they temporarily re-mortgage their current £800k property on an interest-only basis for £200k, in order to raise the investment funds quickly? Then pay the balance back once they have sold the house?
I appreciate this scheme is full of potential pitfalls, but might it work in principle? Does such a mortgage product even exist?! They are retired, but have decent pension incomes of around £45k.
Thanks so much if you can help
0
Comments
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Just the one cheeky little bump - can anyone help me?0
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Given their downsizing plans and the equity/income, there will be a solution.
You will need to think seriously about how long the time gap between funds raised and downsize will happen, to ensure their is no Early Redemption Penalties within this timeframe.
Definitely a broker case, so try and get a recommended one as will obviously not be straightforward.
All the bestI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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