Short term mortgage as bridging loan

steve2359_2

If I am to secure a house which I wish to buy then I need to act quickly. I need to obtain £150k as a short term loan until my present house sells. I have no mortgage and have recently retired from self employing. My bank knows this and can only lend half the money based on my pensions. I am considering applying for a one year self certified mortgage which has no early repayment charge, this seems to give me the £150k at around 8%.
What am I missing?

silvercar

A short term loan while you wait until your house sells is open ended. How long can you afford this mortgage for? Why not reduce your house price to sell quickly, could save you money in the long term.

If your bank can't lend you the amount you need, I think you should look elsewhere. Why will self cert. be the answer? Do you have other income? What will self cert give you? You still need the money to pay the mortgage and selling your house could take a while.

(I presume you weren't intending to self cert in order to falsify your income to get the money. This is fraud and the penalties could be severe plus all lenders reserve the right to verify your application.)

Other options:

If you intended to let your current place, you could get a BTL mortgage on that and use the money to buy your new place.

Straightforward bridging loan.

Griptool

Steve, get a grip of yourself and think how painful it would be if your house takes another six months to sell.:eek: Sell your house first and then proceed, if the house you want is not available then find another.