Secured loan or bridging loan

stevese22

I need some advice for a loan I am currently self employed and own a house with a mortgage.I have tried to get a personal loan but have been rejected although my credit rating is very good.
I am currently selling my late mum's house which is near to exchange of contracts but there are some problems with the deed and the process is coming into the fifth month so I'm not overly confident it's going to happen.
I need to borrow 30000 pounds to tide me over so need advice on what sort of loan to get just incase the process drags on for another 6 months or longer.
The property is selling for 775000 and myself and my brother are joint executors.
Could I get a secured or bridging loan with this asset or would I have to secure it against my own house.
I would ideally like to take the loan out over 6 years to keep the monthly payments down but would like to pay the loan off as soon we sell the house.
Is this possible I obviously know I would pay some sort of interest penalty but would like some help and advice on the best option.
Any advice would be much appreciated

[Deleted User]

Has the estate been through probate? If not, you won't be able to secure a loan against it until it's yours.

You'll need to borrow against your own property, but I would try to work out your chance beforehand and why you were rejected. For example, do you have a poor credit history, or do you not have a high enough income?

What do you need the loan for?

stevese22

I don't earn that much roughly 30000 grand a year and my wife is currently not working so it's a bit of a struggle at the moment.
My credit rating is very good so not sure why I was turned down for a personal loan.
We have done all the probate but would need the money to pay back a freind who lent us the money to pay the inheritance tax first payment so we could obtain the probate certificate I also need to consolidate some credit cards.

[Deleted User]

stevese22 wrote: »

My credit rating is very good so not sure why I was turned down for a personal loan.

Your credit rating isn't used in lending as it's just a number made up by the CRAs.

Lenders will look only at your credit history and circumstances.

If you're carrying debt on cards and asking for as much as you earn in a year, you're screaming high risk to lenders, regardless of any score that Experian want to give you.

Look at how you can reduce costs and at least get the credit card debt gone.

stevese22

Can I not secure a loan against the probate property though as when this is sold I can clear all my debts instantly

[Deleted User]

Take legal advice on that. If it's now officially (part) yours, you may be able to.

But you're still going to have to overcome the challenges presented by your current indebtedness and credit files.

jonesMUFCforever

Until Probate is granted the property or a share of it is not yours - so no you cannot take out a secured loan against it.

stevese22

jonesMUFCforever wrote: »

Until Probate is granted the property or a share of it is not yours - so no you cannot take out a secured loan against it.

Probate has been granted

Clive_Woody

Securing a loan against a property you are inheriting that is near to exchange of contract for selling could get very complicated. The buyers may be put off, the solicitors will have great fun with a newly secured loan.

I really would advise you wait, the money will arrive. Save yourself a lot of pain (and cost)

jonesMUFCforever

stevese22 wrote: »

Probate has been granted

So has ownership passed on to you or is it shared?
I have to say again if you don't own it you can't get a loan secured on it.

fatbelly

I think he said it's joint with his brother.

Your friend knew he was helping the pair of you to move forward with selling the property and there was no guarantee on timescales. He must be expecting to get his money back when you sell.

As for the credit cards I can see why you would want to avoid defaults when you have a large sum coming. Can you meet the minimum payments?