Money stuck in bond - wanting to buy asap

phaedruschild

Hi everyone,

I've spent the day researching on the internet and haven't come up with much. I'm wanting to buy a property asap but my money is stuck in a bond until January 2015. How can I go about getting a loan or mortgage until I have the money available to pay it off. The house is £185,000 and I have £100,000. So need £85,000 until January.

I'm aware I can't get a mortgage and tell them i plan on paying it off after 1 year. Would I be able to get a long term mortgage and then just pay it off in January. I am buying the house to let so doing the sums against how much I will make renting (around £7000) against how much I will have to pay for a loan or mortgage in that time.

Any advice would be appreciated. Even if there is nothing I can do and I will have to just wait that would be good to know too.



Thanks again.

Foxy-Stoat_3

Maybe look at bridging loans for the 8 month gap...if its a BTL though you will want a 75% LTV mortgage anyway to offset the maximum amount of interest from the income tax bill.

Wh05apk

There are a few deals with no penalties, failing that you take a deal and pay the penalty in January, or sit on the funds till the end of the initial deal, normally from 2 years upwards.

HappyMJ

If you are borrowing the money to buy a property to let then I wouldn't pay the mortgage off. You can use the interest charged on the mortgage to reduce your tax payable on the rent received and you can use the money you have saved elsewhere. Maybe a deposit on another rental property.

brenda10

phaedruschild wrote: »

Hi everyone,

I've spent the day researching on the internet and haven't come up with much. I'm wanting to buy a property asap but my money is stuck in a bond until January 2015. How can I go about getting a loan or mortgage until I have the money available to pay it off. The house is £185,000 and I have £100,000. So need £85,000 until January.

I'm aware I can't get a mortgage and tell them i plan on paying it off after 1 year. Would I be able to get a long term mortgage and then just pay it off in January. I am buying the house to let so doing the sums against how much I will make renting (around £7000) against how much I will have to pay for a loan or mortgage in that time.

Any advice would be appreciated. Even if there is nothing I can do and I will have to just wait that would be good to know too.



Thanks again.

I have money in a 5 yr bond but there is a loophole that as long as I give 6 months notice I can withdraw all/some funds if wished. Mine was Newcastle 5 yr bond due to expire in 2016.
Call them and ask.
Good Luck.