Best mortgage/loan to be able to buy house

Sarricell

Hi,
My 87 year old mum has her house on the market for 129,500 and wants to move closer to us and buy a bungalow. We have found the perfect one for her very close to us and the price is 130,000. If she sells her house for the asking price (she is mortgage free) and after all fees and moving costs she has - for example - 125,000 left, and assuming that the seller won't drop the price of the bungalow, can anyone tell me which would be the best way for her to get a loan to make up the shortfall? A friend said to me there may possibly be one of those schemes that would lend the difference and then it would be repaid to them on the sale of the bungalow, whenever that may be. Any advice would be gratefully received! My sister and I want our mum's last years to be happy and worry-free.

ViolaLass

Sound like they're thinking of an equity release scheme, which is very expensive in the long run. It would be much cheaper for you to lend her £5k.

Sarricell

Thanks Violalass; unfortunately neither my sister nor I am in the position to get a loan or have money to lend :-(

[Deleted User]

dont forget to factor in removal and solicitors cost
until she sells her house or at least has a buyer its a pointless exercise to consider what she might be able to buy,but most sellers will except a 5% below asking price offer,but she may also have to reduce her price by 5%