Bridging loan for oap?

kitten

I wonder if anyone has a suggestion?


My mum is elderly and frail. She lives in a nice owner-occupied house, but it's no longer suitable for her due to her medical needs. She has been offered a shared ownership property by the local council and would have to buy a 75% share for £125K. That's fine, her owner-occupied property is worth £135K so she would come out with money spare and a home that's suitable for her disability needs.


She really wants/needs to buy the shared ownership one BUT her house still hasn't sold despite being reduced in price by £10K to attract a buyer, and the council need her to commit within one more week or they will withdraw the offer. Seems harsh of them as she only got offered it three weeks ago.
I really don't want her to miss out on this and would be prepared to remortgage my own house to help her, or borrow on credit cards or anything. It would only be short term because the house will surely sell one day....

Does anyone know of a cheapish way to access this sort of money short-ish term? Bridging loan type of thing? Where there aren't massive early repayment fees?

Pixie5740

Bridging loans are expensive, the interest is about 1.5% a month. You could try remortgaging your own home or taking out a second mortgage (secured loan) against your home but then you might be hit with early repayment charges but those might be less than the cost of a bridging loan.*

Does your mum have money to cover the SDLT for the new property. I know it's not an expensive property but she will have to pay the additional 3% SDLT when she buys the new place although she would be eligible for a refund if her current home is sold within 36 months.

To sell the property quickly (although not within a week) your mum could put the property up for auction with a reserve price. All it takes is two people bidding on it to push the price up.

* I'm assuming that your mother's income isn't high enough to meet the eligibility criteria to borrow the money herself.