Can I borrow for 1 year against low-cost endowment

Joanne_Reid

I'm attempting to buy house based on (low) self-employed income, maintenance and tax credits. Have found 1 bank prepared to offer mortgage. I also have a with-profits low-cost endowment which matures in 12 months and has a guaranteed additional 11k on maturity (which can be claimed only by myself). I will need to cash this in early for house purchase - losing the top-up. Desperately seeking advice on whether there is an alternative - effectively, how to borrow lump sum, with repayment in full in 12 months?
I'm currently renting but have been a homeowner for 30 years.

ACG

Potentially a bridging loan, but they are not particularly cheap - around a 2% set up fee and 1% a month in interest. So around 14% over 12 months.

There is only one lender I can think who may do it at around 7% per year with around 3% in fees (could be more depending on the loan amount) but im not 100%.

You would then also need to pay for valuation and legal fees.

Probably one for a broker, but it wont be cheap.

kingstreet

Some life offices did once offer loans secured on the policy value.

I don't know if this is still the case, or your provider is one of them. You would need to check.