I need help to borrow £15000 with no monthly payments. Pay back when house is sold

bigg

Is it possible to borrow £15000 for approximately 6 months until house is sold, with no monthly payments. I spent 2.5 hours on Halifax chat and finally got offered a minimum of £25000 mortgage. The words 'sledgehammer to crack a nut' spring to mind. Can anyone give me some advice please?

Markmywords

If they offered you the money then they must be happy for you to pay it back when you sell the house. Is that what was agreed? 

bigg

I don't think she knew much, apart from a list of stock answers. I don't want to pay interest on £10,000 I don't need. The house is empty and owned outright by me. I have never had a mortgage and don't want anything that ties me up for years.

lr1277

I have heard of bridging loans but have no experience of them.

You could try this page as a starter, as the loan seems appropriate to your needs:

https://www.experian.co.uk/consumer/loans/guides/bridging-loans.html

I suppose you have to decide, whatever borrowing method you choose, if there are interest payments required till you pay off the borrowed amount, can you make those interest payments?

And the thing with selling houses, it sometimes doesn't go as you expect.

If a buyer knows you have to sell by xx date, they could mess you around or offer a lower price.

Are you prepared for those situations?

Edited to add: And if you can't make the monthly interest payments, there is value in taking the £25k mortgage and using the amount over £15k to make the interest payments.

TheSpectator

bigg said:

I don't think she knew much, apart from a list of stock answers. I don't want to pay interest on £10,000 I don't need. The house is empty and owned outright by me. I have never had a mortgage and don't want anything that ties me up for years.

Minimum mortgage amount will be £25k and sounds like they aren't willing to offer an unsecured loan?

To answer your question, no mainstram lender will accept no payments for 6 months (well none that I know off)

Grumpy_chap

bigg said:

I don't think she knew much, apart from a list of stock answers. I don't want to pay interest on £10,000 I don't need. The house is empty and owned outright by me. I have never had a mortgage and don't want anything that ties me up for years.

Does the mortgage product you were able to obtain allow for over-payments?  You could borrow the minimum £25k, then pay £10k back after a minimum period.
Does the mortgage that was discussed allow for a property that is vacant and not your primary residence?

FlorayG

Despite the fact that you can lend your own money to a bank and wait 12 months for the interest on it to be paid, I don't know of any way to reverse this and borrow money FROM a bank and not pay the interest monthly. It does seem unfair doesn't it?

TheSpectator

FlorayG said:

Despite the fact that you can lend your own money to a bank and wait 12 months for the interest on it to be paid, I don't know of any way to reverse this and borrow money FROM a bank and not pay the interest monthly. It does seem unfair doesn't it?

You can if you choose annual interest paying accounts. Plenty of monthly paying interest accounts available.

silvercar

Unless you find some kind of equity release loan with no penalties for early redemption, I don't think you will find a suitable product. There are some other solutions - you will need to calculate the total costs to see which works out cheapest:

1. credit card loans
2. bank loan/ arranged overdraft
3. standard mortgage with no redemption penalties. Take more than you need and use the excess to meet the repayments for the length of time you need to borrow the money.
4. secured loan

bigg

Thank you all for the posts. It's a lot for me to absorb. I'm new to this. Can anyone recommend reliable companies. the only ones I know are the major banks. I have heard too many horror stories about paying ridiculous interest and being conned.

Nasqueron

There is no chance you will get a loan from a reputable lender of 15k that you don't have to pay back anything for - the banks would assume you could just not sell the house for example