Short term finance - House purchase

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Trying to seek the best way to fund (6 months approx) an amount for house purchase.

We currently have a fully owned house, and need to release around 75% of its value to add to other savings to purchase next property. We will look to sell current property simultaneously, but rather then build a chain, we would like to be able to proceed withoit the related sale.

Ideally I was thinking just a tracker or SVR mortgage, interest only, and then pay it off when the funds became available, but this seems to be an issue.

Any options? Bridging doesnt sound appealing with the large fees

Brie

So you own a home without a mortgage which you plan to sell but want to do that separate from purchasing a new home?

I would agree an SVR poss interest only would be the way to go.  What is the issue?

Have you talked to a mortgage adviser?  Not the route I've ever taken but my house purchases have been more standard than what you are proposing.  

EssexHebridean

I take it that you have factored in the higher rate SDLT payable on the purchase if you still own your current home at the time of completion? 

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Brie said:

So you own a home without a mortgage which you plan to sell but want to do that separate from purchasing a new home?

I would agree an SVR poss interest only would be the way to go.  What is the issue?

Have you talked to a mortgage adviser?  Not the route I've ever taken but my house purchases have been more standard than what you are proposing.  

The issue seems to be that some lenders (in this case Lloyds as an example) do not want to provide short term mortgages. Lloyds insist on taking a 2 year deal, and then paying the ERC. Although they stated that if they knowingly knew the intention was to settle with 6 months, it would be against their rules (guidance)

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EssexHebridean said:

I take it that you have factored in the higher rate SDLT payable on the purchase if you still own your current home at the time of completion? 

Yes, but you can claim it back with a few years, so just adds a small amount of additional short term cash need.

Schwarzwald

In order to make a 6 months loan of this magnitude viable for any commerical Lender there MUST be large fees. How to otherwise make money and justify the transaction costs?

if bridging loan has to large fees …. what do you expect?

Probably the most realistic way is to find family or friends with a large pocket to loan you these funds