Trying to borrow against an inherited property

Teddibiase

Hi!

I have a bad credit history but have recently inherited a property. The property is on the market and naturally I have a copy of the will, probate and the deeds to the property. However I have spoken to my bank, Halifax and they are not prepared to offer me a loan. Could anyone advise as to best course of action to get a loanin these circumstances? The property is on the market for £195000.

Thanks

ChemistDude

Have you tried other lenders?

Teddibiase

I have used the money saving expert credit card and loan application 'soft searches' and they suggest I would be refused by lenders.
That's fair enough, I accept I've gotten myself into a bad credit history situation but it seems strange that a bank wouldn't lend me a small sum, I'm only talking between 4 and 8 thousand pounds.

ChemistDude

Do you own the property you live in? Can you remortgage on that?

Alternatively an expensive way would be to take out a mortgage on the property you are selling.

Bridging finance also another option - very expensive (please be careful before using such methods)

Teddibiase

I had considered applying for a mortgage against the inherited property. I am a council tenant and have the right to buy and also have been given a valuation on my council property which is very reasonable. In fact if the sale of inherited property goes well I should have a decent sum left in the bank. But ultimately while I don't know a great deal about mortgages I think it makes more sense to wait until the property sells rather than incur additional charges via the mortgage. Is it possible to mortgage a small amount against the property for sale, in the region of around £5000? I don't want to take any risks as such regarding borrowing. I'd just like to borrow a relatively small amount against the value of the flat!

Ebe_Scrooge

You say you have inherited a property - are you now the legal owner ?

Also, why are you wanting to borrow £5000 ? Depending on the purpose of the loan, there may be other options available. Or, simplest of all, wait until the property is sold and then use the proceeds to fund your purchase.

AnotherJoe

Whats the rush if its for sale? Why do you need £5k for two or three months?

patman99

So, you live in a Council house and have now inherited a nice house. You want to sell this house and buy your council property?.

My question has to be, why not just move into the inherited property and give your council house back so that someone else can have the chance of a decent roof above their heads?.

marcarm

patman99 wrote: »

So, you live in a Council house and have now inherited a nice house. You want to sell this house and buy your council property?.

My question has to be, why not just move into the inherited property and give your council house back so that someone else can have the chance of a decent roof above their heads?.

Don't be daft, how can OPs pockets be lined doing it that way?

ViolaLass

The property they own might not be suitable for the OP.

foxy-stoat

Teddibiase wrote: »

Hi!

I have a bad credit history but have recently inherited a property. The property is on the market and naturally I have a copy of the will, probate and the deeds to the property. However I have spoken to my bank, Halifax and they are not prepared to offer me a loan. Could anyone advise as to best course of action to get a loanin these circumstances? The property is on the market for £195000.

Thanks

You wont be able to take out a secure loan for £5000, its too low. If its on the market just wait until it sells.