Short term £50k loan

Structural

Hi. I was wandering what options there are for a short term £50k loan? We have a plan maturing in May which will release just over £60k but I have a need to use £50k in January, I cannot get the money out any sooner that ay so would need to look at some sort of loan.

Where would I look? I have a mortgage free house, so could secure it if required. Ideally it will just be interest only as it will be paid off in 1 lump come May.

Any pointer welcome.

Regards
S

Caz3121

For that amount I would reckon a mortgage would be the option if you can find one without hefty early redemption penalties

Thrugelmir

What's the purpose of the money? As this may determine the best avenue to pursue.

SilverSaloon

Thrugelmir wrote: »

What's the purpose of the money? As this may determine the best avenue to pursue.

this would indeed help as obviously the best course of action would be to wait until the plan matures....

Structural

The money is needed for a house deposit on a renovation project. In an ideal world, yes we would wait but we cannot risk losing the house purchase.

TadleyBaggie

Borrowing a deposit is usually frowned upon by lenders.

bigadaj

TadleyBaggie wrote: »

Borrowing a deposit is usually frowned upon by lenders.

But that's normally on an unsecured loan or conditional lending, OP would be fine raising this on a wholly owned property, just needs to determine the cheapest deal, which will probably be a higher rate with free or low fees for set up and settlement.

Structural

TadleyBaggie wrote: »

Borrowing a deposit is usually frowned upon by lenders.

It is only temporarily borrwed until the other money is released. Also, it can be secured against the other property so I can't see that being an issue with the new mortgage lenders.

Would a bridging loan be better?

slickric1234

the arrangement fee and probably a survey makes a mortgage fairly expensive for a short period also early redemption fees

id look into first direct
friend has one and he said money in your bank account is effectively taken off the money owed for interest purposes

when you get the 60k you should effectively be able to pay it off paying no interest by keeping 50k in your account which will then be there in the future should you ever need to get your hands on cash quickly

[Deleted User]

Caz3121 wrote: »

For that amount I would reckon a mortgage would be the option if you can find one without hefty early redemption penalties

there are reasons why a mortgage might be a bad move,the time taken to mortgage a property for one would mean they wouldnt get the money in january,the set up fee could be very high and as said repaying so early would be costly

Thrugelmir

Structural wrote: »

The money is needed for a house deposit on a renovation project. In an ideal world, yes we would wait but we cannot risk losing the house purchase.

You may well find some mortgage lenders uninterested.