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short term loan...

Just wondering if anyone can offer some possible solutions....
My 79 yr old mum owns a flat, is mortgage free and has no other debt. She wants to buy a bungalow, but doesn't want to sell the flat first - feels it would be less stressful to move into the bungalow then sell the flat..
She has savings, but is approx £10,000 short. Is there any way as a pensioner she would be able to borrow the £10,000 short term until she's moved and the flat sells? She has an income of approx £10,000 a year..
Alternatively could she apply for a joint loan with my son even though they don't live together.. he's in the forces - don't think I'd be approved, have a mortgage, car loan and a couple of other bits and bob's.
Any ideas would be great!

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    A bridging loan secured on the property to be sold is the usual way to fund this type of transaction (not cheap if it takes a long term to sell the current house).

    A joint loan - possibly if his income/affordability is sufficient and they both have good credit history. They'd both be liable for the loan and any repayments.
    Will she be in a position to make the payments on the loan in the interim period? It may be easier for him to get a loan on his own (if he is prepared to do so).

    But obviously the most usual solution is to sell and buy at the same time in a chain.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Just spoke to a nice man at Sainsburys bank, who said she could apply for a personal loan as long as the term didn't exceed past her 83rd birthday..have checked the payments on their calculator, and they would be affordable...
    Son already has a car loan, so not sure taking another loan himself would be do-able, but the guy at Sainsburys said a joint application with joint incomes would be viable.
    When I've searched for bridging loans they don't seem to do amounts under £25,000..
    Selling hers and then buying would be the simplest option, but she doesn't seem to think the bungalow will be on the market for long, so was thinking of alternatives..
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