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    • laurab2306
    • By laurab2306 12th Sep 17, 1:22 PM
    • 2Posts
    • 0Thanks
    Short Term Mortgage or Bridging Loan
    • #1
    • 12th Sep 17, 1:22 PM
    Short Term Mortgage or Bridging Loan 12th Sep 17 at 1:22 PM
    My mother has recently passed away and I have inherited 50% of her estate.
    The family home is on the market and Probate is in the process of being granted.

    My own home is also on the market and I have found a property that I would like to purchase.
    There is around 150K difference in price between my home and the house I wish to purchase.

    My question, I intend that once my mothers house is sold to be Mortgage free. There is an Early Re-payment charge on my current mortgage which is 2% of around 190k.

    However in the short term I need to find the 150k difference in order to purchase my new property. Would I be better off with a Short Term Mortgage for the additional amount, or should I apply for a bridging loan to complete the purchase and then pay this off along with my existing mortgage once my Mums house has sold?

    I hope that this makes sense!
Page 1
    • getmore4less
    • By getmore4less 12th Sep 17, 1:33 PM
    • 32,390 Posts
    • 19,461 Thanks
    • #2
    • 12th Sep 17, 1:33 PM
    • #2
    • 12th Sep 17, 1:33 PM
    port your current mortgage over to the new property wait to be ERC free then pay it off with the inheritance.

    Not clear, do you need 150 on top of the free equity on your current place on on top of the sale price with a 190k mortgage

    if you mean the new place is 150 more than the current one with 190k mortgage then you will need to borrow 340k

    Will your current/any lender do that.

    Any money in the estate to get an interim payment before the house sells.
    • laurab2306
    • By laurab2306 12th Sep 17, 3:08 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 12th Sep 17, 3:08 PM
    • #3
    • 12th Sep 17, 3:08 PM
    Thank you for your response, basically if my house sells I will be around 100k short to purchase the house that I want to buy but only until the house sale money comes through.

    With my salary I should be able to increase my mortgage by 100k however this would have to be done on a "new" mortgage, which I don't really want to take out due to the ERC. Realistically I would only require this for a couple of months whilst the house sale goes through, hence my question about a Bridging Loan instead. However I don't know much about these
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