best way to borrow £80,000 for 9 months 30 September 2013 at 7:56PM edited 30 November -1 at 1:00AM in Loans 17 replies 5.3K views

greenery

Hi. I need to borrow £80,000 which i can pay back in 9 months. I have savings bond that matures in 9 months but i can't withdraw it now. I am a home owner.. Any ideas?

dealer_wins

If you have sufficient equity in your home, talking to a mortgage company/your bank would be a good place to start.

Tixy

Are you going to be able to make any repayments on the loan during the 9months?
A bridging loan? or remortgage your property?

Do you have an existing mortgage on the property at all?

greenery

Tixy wrote: »

Are you going to be able to make any repayments on the loan during the 9months?
A bridging loan? or remortgage your property?

Do you have an existing mortgage on the property at all?

No existing mortgage. Don't really want to make any payments during the loan, but could do.
Don't want to remortgage since it is only for 9 months
Would a bank give me a bridging loan? What sort of interest rate would i be looking at?

DCFC79

Don't think anyone can tell you if a bank will give you a bridging loan and at what rate, your best speaking to your bank.

somethingcorporate

Bridging loans are expensive. A mortgage would be far cheaper. If you get an offset mortgage you could offset it entirely in 9 months time when your funds come through to clean the loan.

Talk to a broker.

Tixy

A bridging loan would quite likely cost quite a bit more than a mortgage over 9 months, its likely too long a period for a bridging loan to be cost effective.
They are generally charged as a monthly interest rate, but the APR could be around 8% to 15% maybe.

chalkie99

Probably depends on the nature of the savings bond.

I doubt if Coop Bank bondholders had any worries 9 months ago and then, without warning, the bank was found to be in trouble and the bondholders are the losers.

No-one can really forecast what will happen in the next 9 months but the alternative media is full of scare stories which may have at least an element of truth in them.

Speak to your bank and see how nervous they are about it and have a plan B in case you cannot access your funds.

Neilhmtn

chalkie99 wrote: »

Probably depends on the nature of the savings bond.

I doubt if Coop Bank bondholders had any worries 9 months ago and then, without warning, the bank was found to be in trouble and the bondholders are the losers.

I'm not a financial adviser, but I don't think this is the same kind of bond that the OP is talking about. The Co-Op bondholders weren't people with savings "bonds" - these were corporate bonds, where investors were actually lending money to the Co-Op. There'd be no FSCS protection for that kind of thing.

jonesMUFCforever

OP What charges would be imposed if you got the bond money out early.

greenery

jonesMUFCforever wrote: »

OP What charges would be imposed if you got the bond money out early.

I cannot take the money out, whatever. Its my fault, I did not realize this at the time.
The money is safe, so I know I can have it in 9 months.
Thanks everyone for the replies