short term loan

hollywoodtower

Hi, any sensible suggestions on this question?

We sold our house and downsized into a small retirement flat (that we inherited) as a temporary measure whilst we look for a more suitable and spacious apartment. We have the proceeds in various accounts and ISA's and this amounts to around £310K. We envisaged buying an apartment up to £220K so have kept this amount accessible but put the remaining £80K into a one year building society bond that matures in September 2014. We are not finding the right property and prices are starting to go up so are upping our price range to £250K.

If we find 'the one' in the next few weeks or so, we will , guess to probably complete by about June/July time but i cannot get my hands on any of the £80k until early September. It is a definite no withdrawal account, which I don't have a problem with as we knew that at the time - we just didn't envisage that the property we want would be so elusive and that we would have to up the ante.

Question is, where can I borrow up to (say) £25-30K and what might it cost for what would only be 2/3 months until the bond matures and I can pay it back? I am guessing most places want at least a 12 month term which would be quite expensive.

Any sensible ideas?

DCFC79

I can only think of a bridging loan but they are expensive if you can even get 1. Your own bank might be a good place to start.

bigadaj

One option is a mortgage.

You'd need to get one with low fees, so a slightly higher rate which wouldn't be significant based on teh low sum your looking to borrow.

You might not be able to pay it off for say six months but even if your paying 5% interest with low fees then it won't be a significant amount in actual pounds and pence.

The other option is to look at personal loans, limited to £25k but you could take out one each. This will be based on your credit file and affordability but again you should be able to pay off with limited penalty, though check what that is before applying.

The key thing is to work out the actual cost rather than focusing on fees or rates or any other individual element.