Best way to get hold of approx £40k without a mortgage?

nonnatus

Hi,

Basically, we are two families moving together to become one.

Family A are selling a £300k property. Sale will result in £250k in cash after mortgage is paid off. No desire for any future mortgage.

Family B is selling a £100k property. Due to a divorce commitment, they will have £40K to add to new house fund

New house costs £290k. It will be bought without a mortgage.
There will be a £2k per month Income from pensions etc once we are all moved in together and hope to live fairly self sufficiently!

The PROBLEM is Family A has had a lot of interest and now has received a great offer. Family B is having less luck. No viewings in 12 weeks etc. We are now changing Agents, dropping price by 10% and stressing the importance of speed. House is priced very realistically but is in an undesirable part of UK and we thought this might happen.

We obviously can't proceed with our purchase until we can get hold of the last £40k chunk from family B but don't want to lose this PERFECT home.

Is there any way we could get hold of £40k whilst waiting for Family B to sell their house? There is no other family to ask.

The only consistent income we have between us is the Pensions. No chance of a small mortgage (and we don't want a mortgage tied around our necks anyway). But it could take another year!

Is it worth asking the Bank for a loan - or has anyone done anything similar and have an idea??

Guest101

The bank may lend you the money - but the reality of it is you are in essence asking them for an unsecured mortgage - i dont see them going for it to be honest.

any other significant assets you could borrow against?

Hoploz

Speak to a broker, I'm sure you could borrow this amount with a mortgage against the new house. It wouldn't cost that much as you would repay it after a short time even though you would have taken it over a long term, perhaps around £200 pcm, so you would need to consider whether paying this is better than slashing the price of the house even further. Or you could consider one of those house buying companies but presumably they would offer much lower than market value, but if it means you can proceed ....

DTDfanBoy

nonnatus wrote: »

House is priced very realistically but is in an undesirable part of UK and we thought this might happen.

To be honest if you've had no viewing at all in 12 weeks that suggests to me that the property probably isn't realistically priced, let alone priced at a level which will guarantee you a quick sale

Do you have a link to the property, perhaps a bit of feedback from the community would give you some ideas as to what needs to be changed to sell the place quickly.

Tixy

A broker should be able to advise on whether a bridging loan would be an option.

But not necessarily cheap, so once you know how much it might cost you then you could always consider whether an equivalent price reduction in the house would make a big difference to how quickly it might sell.

nonnatus

Thanks all, some interesting comments.

I think I'll find a Broker and lay it all out in front of them and see what they say. I just didn't think we'd be offered a Mortgage (even a small one) if our only income was Pensions (even though the Pensions bring in more than £2k a month)...

DTDFanboy - I'd love to post a link but it's not my house. Family B live 400 miles away at the moment and had opted for a small local Agent who only used OnTheMarket.com and their high street presence.

We've had to wait twelve weeks to get out of their contract and I've now "guided" family B into going with a much bigger Agent who actually uses Rightmove! Once it's on a decent Portal, I'll post again with a link and get your advice.

Thanks again