where to get a loan of £100k

walsh350

is there a low cost loan option for this kind of figure?

long story short. my parents council house is to be knocked down in the next 5 years and they will be 'relocated'.

the houses were built as a temporary measure after the second world war. They tried to get a mortgage about 10 years, but were turned down because the buildings were "temporary" even though the houses are built better than a lot of modern constructions.

things may have changed and there may be an option of now getting a mortgage but we need a back up plan.

we are entitled to buy the property but as i say getting a mortgage may be difficult.

we want to buy the property so the council will have to buy us out if/when they redevelop the area.

does anybody know of any options on getting a low cost loan of 100k?

all paperwork proof of earnings etc is in order and we wouldnt struggle to get a mortgage of around 250k if it was a different property.

If any of you whizzes have any idea please do get in touch, it would massively appreciated.


Regards,

Paul

pink_princess

What if the council only give you 40k?

jonesMUFCforever

I agree with previous poster - compulsory purchase might not be market price - plus if you are aware of something happening in 5 years this might well come out when they do searches at the Land registry = mortgage offer withdrawn.

walsh350

thanks for responses. deffo something to consider.

we would have to look through the buying paperwork with a fine tooth comb.

lets say we just wanted a loan of 100k gbp at a good price. do you guys know where might be a good place to look. say like pay back 1100 gbp per month for 10 years?
is 10% on a loan of 100k over 10 years realistic?

Thrugelmir

You'll need to apply for a mortgage. As you won't obtain an unsecured loan for a sum of this size.

walsh350

Thrugelmir wrote: »

You'll need to apply for a mortgage. As you won't obtain an unsecured loan for a sum of this size.

even if we put 20k upfront? have a perfect credit score, and proof of earnings showing a decent amount?

i do get what your saying tough. obviously if you default on a mortgage they get the asset...

simpywimpy

Most loan companies wouldnt offer anywhere near this amount regardless of your credit standing without some form of security ie property.

Buying the house in the hope its compulsory purchased in the future is a massive gamble. Most councils offer well below the market value

walsh350

its not 100% about the compulsory purchase but the repayments on a mortgage, if we can get one, would be around the same as the rent. paying rent instead of repayments when the two figures are near parity just seems illogical captain...

we may well be able to get a mortage. were just looking for a plan b.

if a loan of 100k really isnt feasible then at least i know what we can't do.

Im just researching at the moment and thanks to anyone who has taken the time to respond.

if there is an einstein with a brainwave let me know.

cheers

[Deleted User]

The chances of this are as close to nil as possible. A loan for a property purchase that isn't secured against the property is not going to happen, the majority of consumer credit has limits of 1x salary with mortgages being the exception. Focus on a mortgage, if a mortgage company won't help then there's no chance a normal lender will.

If your parents have a deposit and can get a mortgage up to £250k would buying their own place independent on any housing authority be an option?

DCFC79

walsh350 wrote: »

even if we put 20k upfront? have a perfect credit score, and proof of earnings showing a decent amount?

i do get what your saying tough. obviously if you default on a mortgage they get the asset...

What's a credit score ?

That figure given by experian and all, well its worthless as lenders don't see it and use an in house system to determine whether to lend or not.

Herzlos

It's going to cost £100K to buy the council house? I thought they offered pretty significant discounts to buyers if they'd been there long term. Have you checked if the council will actually sell you the house if they are going to have to buy it off you in 5 years time?