Very Short Term Mortgage

[Belindabelle]

I suppose what I really need is a bridging loan but the thought of that terrifies me so I am wondering if I can take out a mortgage against a property I want to buy for 6 months or so.

I am due to get an inheritance but probate is taking ages. The solicitor dealing with the estate had failed to lodge the forms correctly so the whole process has taken far longer than expected.

The vendors are getting impatient, I don’t blame them. In order to secure the house and complete the purchase I am considering getting a mortgage to cover the shortfall. However once the inheritance comes through I would want to clear the mortgage straight away.

Any thoughts on the best way to approach this.

Speak to a broker, but there are trackers with no early repayment charge. Imagine will be cheaper than bridging finance.

Talk to a broker about an offset mortgage or a tracker with no penalty. An offset means you can still access the money if you choose to.

Thank you. I am going to get in touch with a broker to explore my options.

@Harvey100522 or anyone else have an opinion on if it would it be madness to go for Interest only for the 4-6 months that I would need?

Say I want to borrow £250k, given my age I would only get a 10 year term. At 4.5% (example) repayment would be £2591, interest only would be £937 per month.

I can afford the higher amount but the lower figure would give me better cash-flow to start work to the property whilst I wait for probate to complete.

Is the money from the inheritance in cash or is it dependent on the sale of a property?

@Belindabelle Speak to London and Country, they are completely free and recommended by MoneySavingExpert website. They are the best to advise you on your situation.

There are trackers with no early repayment charge, no fixed periods and no fees. My broker was comparing them for me three weeks ago.

The fees for bridging loans will make your eyes water.