Hello, wondering if anyone has any bright ideas to address the situation I'm in.
A few years ago I bought as house and my dad lent me some money towards the deposit on the understanding that when the house was sold further down the line I would pay him back. Fast forward to now and the house is on the market (doing ok, probably need to drop the price a bit but no concerns that it will sell in the next few weeks, we don't need it to sell at a certain price for our next move so whatever we get for it is fine by us).
Sadly my dad injured himself recently and needs an operation to sort it out, the wait time is long on the nhs but he can get it done privately so I have offered to pay him back in instalments to help. However, obviously I want to pay him back in full as quickly as possible so he can get his op and not have to wait for the house sale to go through. The amount I owe him is 11k, we're fortunate that we would have no problem borrowing that amount but I'm just trying to think of the best way to do it. My preferred option was to get additional borrowing on the existing mortgage as this would tie things up nicely when we sell and not cost us anything extra a month as we overpay the mortgage anyway. The problem with that is that the minimum term with our bank for such a loan is 5 years and we expect to sell and discharge that mortgage in the next few months. A personal loan is an option as is getting a cash advance on my credit card (2% fee and 0% interest for 2 years and we should have sold the house by then and paid it back) but I'd prefer to tie it to the property if I can as it seems neater.
There's no issue with affordability however we borrow and we own around 60% of the equity in the current house. I'm going to have a chat with our mortgage provider but wondered if anyone had any other suggestions?