Loan before sale of house?

michael079

Hi I'm currently going through probate and will be selling the house after confirmation but there has been lengthy delays. I had hoped to sell it before July but that might not be possible now.

My question is, what options are there, if any, of increasing chances of a loan once the house is up for sale?

I'd be looking for about £5k. The house is valued at £250k and there is an equity charge of £91k. I have a poor credit rating but I've heard there may be bridging finance options, but maybe not for such a small amount.

Is there any other options that anyone is aware of where my chances are increased if there is an imminent sale? Many thanks

Brie

A sale isn't a sale until it's completed. So I would look at how affordable the loan is without the sale going through quickly. Is there an urgent need for the £5k? I must admit that when I was looking to remortgage the bank was very willing to accept my word that I was expecting an inheritance at some point. And inheritances are even less predictable than house sales.

Brie

AND - credit ratings are a fiction that only you see. Look at your credit records to see what a bank will see if they are thinking about lending you anything. No CCJs, no long lists of defaulted credit cards. Not a lot of other credit agreements like phone contracts or paying monthly for motor insurance. That you are shown as being a registered voter. If there's anything you can tidy up then do so and give the credit record a month or 3 to update before applying for a loan.

retiredbanker1

If you have a poor credit file then getting £5k loan will be difficult.

When will probate be granted ? Are you an executor? How many beneficiaries and what is total amount of estate?

Are there any other liquid assets in the estate?

When probate has been granted if say the estate is being administered by a firm of solicitors they MAY issue you with an advance if there is sufficient funds available (prior to sale of the house)

MEM62

Your options with respect to the loan may vary depending on what you need it for. Either way, be wary about borrowing against expected income as amounts and timescales are not always as expected.