Will a Secured Loan hamper my house sale

Jeffers25

I have had my house on sale since October but no joy as yet, not the best time of year to sell I know but we are just coming into house selling season so hopefully it shouldn’t take too much longer to find a buyer. I’m selling and moving into rented accommodation and will have a good amount of equity in the sale however. I am retired and my only source of income is my state pension but I am still making mortgage payments. My current savings are dwindling fast and I am worried that I will run out of cash before I complete on my sale, what is the best course of action for me, could a short term secured loan be my answer and if so how would this affect my house sale

MattMattMattUK

Jeffers25 said:

I have had my house on sale since October but no joy as yet, not the best time of year to sell I know but we are just coming into house selling season so hopefully it shouldn’t take too much longer to find a buyer. I’m selling and moving into rented accommodation and will have a good amount of equity in the sale however. I am retired and my only source of income is my state pension but I am still making mortgage payments. My current savings are dwindling fast and I am worried that I will run out of cash before I complete on my sale, what is the best course of action for me, 

Probably lowering the price of the house and cutting down on outgoings as much as possible.

Jeffers25 said:

could a short term secured loan be my answer and if so how would this affect my house sale

It will not impact it directly, but will add significant cost, you will pay an upfront loaded fee on most secured loans, as well as an early repayment charge when you sell the house and an interest rate of 10-15%, there would probably be an increased conveyancing fee for the hassle of dealing with the loan, but it does not impact actually selling the property if handled properly. If you borrowed £25k it might expect it to cost you £5-8k over a year with ERC, fees etc. 

Jeffers25

Thank you for your quick response it doesn’t sound ideal does it. I would only need around £5k just to see me through my sale for around 6 months or so. What do you think my other options could be bearing in mind my current income just covers my mortgage and rates each month.

born_again

TBH.
Speak to the mortgage company. They may just help you here given the house is up for sale. They might just allow a payment freeze or interest only period.
Will be far better than getting a secure loan for a short period.

Jeffers25

born_again said:

TBH.
Speak to the mortgage company. They may just help you here given the house is up for sale. They might just allow a payment freeze or interest only period.
Will be far better than getting a secure loan for a short period.

Thank you for your comment