Finance options for loan whilst house sale completes

[LemonSwan]

Hi all,

Sorry for posting here but money section didn’t seem to have right topics so a bit confused.

Have a friend in a bind really needs short term loan whilst house sale completes.

They have no income so struggling to get any loans even though the house sale would be the security.

Hopefully completing end of Jan.

What options can I suggest to help? Any good loan brokers or mechanisms (equity release) I can suggest.

Thanks in advance.

No one? 😬

Oh dear not sure what to suggest to friend.

Couldn't they ask their bank for a bridging loan?

Bridging loans are rare now and taking collateral via a legal charge would take as long to put in place as the house sale to go through in January.
no lender will give a loan without income to support. They can’t rely on collateral alone

Thank you both, hmm seems they really are in a bind. I assumed this would be an easy fix.

Is there any mechanism where by you can push for exchange and have the 10% deposit immediately?

Could you not lend them money until it completes?

Have they maxed out their overdraft and credit cards? Can they sell some stuff, furniture, vehicles, laptop/x-box/tech items, pawn any jewellery? Have they any family or friends who might help them with a loan?

Why do they have no income? None at all?

No - funds only move on sale.

Have they claimed any benefits they are entitled to?

If I could I wouldn’t be asking. Currently on may leave and the amount is a large proportion of our savings so wouldn’t risk it in case sale falls through at last minute. Thank you though for reply.

Hmm seems sale of personal goods and family/ other friends is only option.

Thanks all.

are they reliant on a mortgage for their onward purchase?

if so then absolutely do not take out any new credit.

lenders can re run checks at any time up until completion (not exchange) and any new credit may result in their offer being withdrawn.

No this is an additional property which they are selling.

Still doesn't explain how they have no income, and now else find out they own more than one property. Someone, somewhere, is playing the world's smallest violin.

So if this is a second property and they do not need to buy somewhere to live, what is the loan needed for? Is it to pay solictors fees and tax? If so they can be settles once the sale is complete surely?

So they have two properties? why do they have no income? I'm a bit confused by this post.

Can they not extend mortgage on property they are living in? That will be the quickest way to get money

Otherwise as @blubberyboo said, with no income, any other official (ie not friends) loan will need security and the 2nd property will likely sell quicker

It's not that difficult to find yourselves both out of work but owning a property. Asset rich cash poor!

Yes but why the need for money ifnit is a second property. Mr Monkey sold his flat and moved in to my rented place when he was unemployed. He simply settled the conveyancing and estate agents fees once he had sold the property.

It all sounds a bit messy. I think they were hoping to get another job quicker and so got loans to cover other commitments and then it hasn’t worked out and it’s all gotten into a bind. Hence the selling of the other property to ‘reset’ for want of a better word.

It’s clearly not possible from what PPs said to raise funds officially. It’s looking like if friends / family can’t help they are just going to have to wait for the sale and deal with any penalties/ the mess after. I will just tell them to keep their chin up and this will be ok soon enough.

Thanks all.

Merry Christmas 🎄

Ahh ok. So they need the proceeds of the second property sale to meet other urgent financial commitments.