Need to find £70k for house purchase - money locked up

dryriser

Thanks for listening... in summary and context: 
I'm buying a second property, deposits and all necessaries proceeding with mortgage offer in place, with purchase due for completion by end of November.
But, just discovered that some of my funds are locked away in a fixed rate savings account with no early withdrawal until maturity in April 2025.  £70k to be precise.

I'm discussing options with my IFA at the moment but he's super conservative and I would be interested in others opinions. I believe my options are as follows:

1. Family support - Can someone create a short-term loan themselves, either as equity release on their property or some other facility - it's a long shot, and we'd need some contract in place with them.

2. Short-term borrowing - 

• Either as a personal loan, or Bridging loan. In either scenario we would need to be upfront and honest with mortgage lender, and likely renegotiate the offer, or seek a new lender.

3. 2nd Mortgage on main property - Could this be done with the main prop as collateral? 

4. Delay purchase 

Property is a new-build so it may be possible to push back but mortgage offer would be expired by April so would need a new offer anyway.

What is eveyone's thoughts?

Mark_d

If you have equity in your current property maybe you release some of this by working with your existing mortgage.  Otherwise you could remortgage to release equity.

A bridging loan might be your other option though it wouldn't be cheap and it would wipe out any interest you would have made using your fixed savings account.

user1977

If you mean a loan from another party to supplement your mortgage, that's unlikely to be acceptable to your mortgage lender. A loan for the full amount you need to borrow would work.

ACG

When you say the money is locked away, are you saying it is locked away and you cant get it or its locked away and you will lose the interest on it? 

I only ask because, if the interest if 5-6%, its probably better to tak the hit. Any other options by the time you take into account the costs, the work etc its probably going to be financially worse and cause more headaches. 

dryriser

ACG said:

When you say the money is locked away, are you saying it is locked away and you cant get it or its locked away and you will lose the interest on it? 

I only ask because, if the interest if 5-6%, its probably better to tak the hit. Any other options by the time you take into account the costs, the work etc its probably going to be financially worse and cause more headaches. 

Thanks ACG. Locked away with no chance for withdrawal. Very frustrating but I know what I signed up for, I just forgot when we agreed to buy this property. 

Yorkie1

I suspect that any arrangement to find part-funds anywhere would have to be declared to the lender with whom you currently have a mortgage offer, which might then lead to reassessment of affordability anyway.

BikingBud

dryriser said:

Thanks for listening... in summary and context: 
I'm buying a second property, deposits and all necessaries proceeding with mortgage offer in place, with purchase due for completion by end of November.
But, just discovered that some of my funds are locked away in a fixed rate savings account with no early withdrawal until maturity in April 2025.  £70k to be precise.

I'm discussing options with my IFA at the moment but he's super conservative and I would be interested in others opinions. I believe my options are as follows:

1. Family support - Can someone create a short-term loan themselves, either as equity release on their property or some other facility - it's a long shot, and we'd need some contract in place with them.

2. Short-term borrowing - 

• Either as a personal loan, or Bridging loan. In either scenario we would need to be upfront and honest with mortgage lender, and likely renegotiate the offer, or seek a new lender.

3. 2nd Mortgage on main property - Could this be done with the main prop as collateral? 

4. Delay purchase 

Property is a new-build so it may be possible to push back but mortgage offer would be expired by April so would need a new offer anyway.

What is eveyone's thoughts?

Clearly not. 

I find this "oversight" a marker of inadequate preparedness and potentially a lack of due dilligence. 

Personally I would be reviewing all the factors and perceived benefits influencing the purchase of a second home to ensure that all applicable costs are captured and understood. Is it for holidays, BTL, other family members to live in? Each of those may infer and incur differing financial burdens that you also might not have fully considered.

Perhaps the cautious approach of your IFA may be a warning that is worth heeding. What did they advise? After all you are engaging them for their specialist and regulated advice whereas people on here have no skin in the game.