To loan, or not to loan??

moody_cow

Im in the position of buying a new home and not sure which way to go re the short term finance. I have a property I own outright, plus another (and some cash) in an inheritance which should be with me in the next month. I need to raise funds for this new property, which the sum of my 2 homes will easily cover. Ideally I would like to use my inheritance plus a short term loan, to cover full payment of the new property. That way I can modernize the inheritance property, realising a good return, and then sell my home I live in as soon as we move. Im really not sure which kind of loan is best, or is there another way for me to go about this??


Im looking to borrow £100k, which I would be looking to repay within 6 months max.


ANY help at all would be great.
Thank you xx

Tixy

A bridging loan secured on your existing property would be an option to investigate.
However typically bridging loans often become more expensive than a mortgage if money is borrowed over more than around 6months.

So I would investigate and weigh up the costs of both a bridging loan and a mortgage with low/no early repayment penalties.
In doing those calculations its usually a good idea to add on a few months in terms of how long you expect it take to repay the loan, 6months doesn't sound long to market any house for sale, find a buyer and complete a sale.