Borrowing for house purchase

theoretica

Bridging loans or very short mortgages do tend to be more expensive - the lenders still want to get their profit out of you and squash it into a smaller timescale.

Chris_English

Dexter9719 said:

Hi all, long story short (ish!)….my hubby is 60, has been excellent with money all his life…last mortgage paid off 13 years ago, minimal card use, no car loans etc….we are looking to purchase a house and are a measly 17% short of being able to cover the asking price in cash and even then this is only until we sell our current house when we would be able to clear anything we’d had to borrow…we approached a recommended FA who said despite his lifelong best efforts my hubby is now a “credit risk” due to his age and lack of recent credit history, the only option he could offer was a mortgage with £750pm repayments which we would have to be stuck with for 2 years (meaning we’d pay around £18k in unnecessary interest). It doesn’t seem right that he can be punished for being so conscientious all his life, we have most of the money and own 2 houses outright yet can’t borrow a small amount for a few months…any alternative ideas please?

If it's £18,000 in interest, then assuming 2% (about right for a two year fix) that's a £450,000 mortgage. If that's only 17% of the asking price then you are buying a new house for about £2.6 million, is that right?

Anyone who's buying a £2.6m house at 60 years old is going to have other investments, so why not sell some of your stocks or bonds to cover the shortfall?