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Original poster

How can I borrow £45K ??? (legally and fast!!)

83 replies

pinkingshears · 18/04/2025 10:20

I want to move and have found a fixer-upper which is going to auction at £45K (seller accepting bids prior to auction date of 1st May) This property has a Home Report (I am in Scotland) value of £90K but the HR says that £15K of work needs doing before funds should be released so is not mortgageable at present.

I would therefore need to borrow funds via a different method. This is hard as I am not employed but am a full time carer for my disabled young person. My income is 2K per month (all benefits, some Carer's some UC and some PIP)

My current house has an outstanding mortgage (taken before I stopped work) of £100K, this is due to expire in 2029 and is interest only so I currently pay £192 p/m. I will need to sell then but this place is perfect for 'getting ready' for that.
My house should fetch no less than £275K if sold (identical house opposite sold for £350 last month) which would leave a balance of £175K so plenty of equity. but not enough time to sell before fixer upper auction.

Will I be able to obtain Bridging Funds or is my income too low for affordabiltiy please?

OP posts:
ToKittyornottoKitty · 18/04/2025 19:53

Do you even think you can actually afford it once UC potentially stops for a while and you have all those extra costs?

I don’t think there are any other options. It’s not a great idea to be honest

caringcarer · 18/04/2025 20:04

If you are in Scotland don't they have the system where the house goes up for a small amount and everyone has to bid higher than to get the house? It's probably been put up for less than they expect to get.

caringcarer · 18/04/2025 20:08

Terrible idea. I've done up several fixer uppers and whatever you think it will cost to do up double it and then add on some more. Unless you can do the work yourself it will be a money pit.

Catlady63 · 19/04/2025 02:12

Even if this was a ready to walk into home it would still be a faff to get everything set up re selling your house to get the funds to buy it quickly. Planning to do this when the house isn't habitable, and you're on benefits, is crazy.

I think you need to sell your house first, as you don't have the income for a bridging loan, so why not wait till 2029?

Catlady63 · 19/04/2025 02:16

You say that you have mobility needs, and you're also a carer, so it sounds as if you wouldn't be able to do much renovation work yourself, or live in a house that needed a lot of work. You need something you can move into, not a project which will be even more of a money pit if you can't live there during renovations or do any yourself.

Justlurking101 · 19/04/2025 02:20

I think you have a good plan as to how to use your equity to get more suitable housing, but you are getting ahead of yourself! You need to get your home on the market, possibly move into rental property for 6 months once you sell. Keep an eye on suitable properties that become available and do this once you have money available. You may find somewhere in a year or so that doesn't need the same work to make it suitable, better suited and less stressful with a high interest bridging loan while having a mortgage on a property that will increase when your fix term runs out! Please don't rush , your property may not sell quickly, you might not be able to have enough money to cover both house payments, council tax, property tax.

UncharteredWaters · 19/04/2025 02:37

You’ll also pay second home LBTT if in Scotland!

Original poster
pinkingshears · 19/04/2025 03:15

My mortgage payments will double in August, even on rhe best new 2 Yr fixed deal I can get. My current home is cold, damp and crumbling. I can't stay another 4 years anyway. Selling & renting whilst hoping I've enough money for somewhere suitable would be expensive, & stressful. I'd rather buy this place, stash my stuff in one end of it, rent a caravan if necess whilst I do it up. I've thought through my situation & options so it was advice re bridging / loans I was here for.

OP posts:
MuttsNutts · 19/04/2025 08:15

You need another plan because you won’t get that house even if you were able to arrange finance. If the auction starts at £45k there is no way on earth it’s going to sell for that amount.

LoopyGremlin · 19/04/2025 09:14

You’ll be up against property developers I would imagine who have the ability/skills/connections to do up the house so can afford to go way over the guide price.

ToKittyornottoKitty · 19/04/2025 09:16

pinkingshears · 19/04/2025 03:15

My mortgage payments will double in August, even on rhe best new 2 Yr fixed deal I can get. My current home is cold, damp and crumbling. I can't stay another 4 years anyway. Selling & renting whilst hoping I've enough money for somewhere suitable would be expensive, & stressful. I'd rather buy this place, stash my stuff in one end of it, rent a caravan if necess whilst I do it up. I've thought through my situation & options so it was advice re bridging / loans I was here for.

Are you going to go for the expensive deal you’ve been offered then? Is your house on the market already?

redastherose · 19/04/2025 09:37

the usual way would be for you to ask your current mortgage provider to lend you the money secured on the equity in your home. This would most likely be the cheapest and quickest option.

Lifestooshort71 · 19/04/2025 10:09

redastherose · 19/04/2025 09:37

the usual way would be for you to ask your current mortgage provider to lend you the money secured on the equity in your home. This would most likely be the cheapest and quickest option.

This. You've already decided to go ahead so see if the mortgage company will lend it to you. Living in a caravan with mobility issues and a child you're the carer for sounds fun.

BlondeMummyto1 · 19/04/2025 10:50

Sounds like you’ve made your mind up. Honestly can’t fathom how someone on UC can
buy a second house and renovate it.

Youcancallmeirrelevant · 19/04/2025 10:56

I don't think you understand how auctions work? The house will go for way more than £45kz, it's not a take it or leave it situation, it's an auction

Radionowhere · 19/04/2025 10:59

We've done this, bought a wreck and lived in it while doing it up. We were young, had contacts in the trades and spent evenings and weekends working on it ourselves. It took years.
I wouldn't do it know, partly because I'm older and can't be arsed and partly because the housing market has completely changed.

This is giving DIY SOS vibes. Absolute best of luck if you go for it OP. You'll need it.

ToKittyornottoKitty · 19/04/2025 11:02

BlondeMummyto1 · 19/04/2025 10:50

Sounds like you’ve made your mind up. Honestly can’t fathom how someone on UC can
buy a second house and renovate it.

The reality is she won’t be able to afford it at all, she’s probably desperate and can’t work out what the best and most realistic thing to do is though.

Whambamfam · 19/04/2025 11:05

I don't think you can. I'm employed with top up benefit at the moment. I looked into affordable housing scheme, they state that when they calculate affordability for borrowing, any of the benefit for housing is deducted and then they deduct a % on top. So I was advised to reapply once back to full-time. (This was for a sole application may differ if you have a second person on there)

In regards to other ways to borrow, I don't think 45,000 would be possible :/ with alternative types of lenders they would go through your statements, spending habits, credit scores and the earning potential to gather if your high risk. So even if you get a loan, you would have high interest to offset risk. So long-term it would be challenging to maintain repayments.

Tallyrand · 19/04/2025 11:46

This sounds more like you can't afford where you live and are scrambling for an out.

I doubt you will be able to take equity out as you probably won't pass the affordability. Equity in your house is only realised when you sell, nobody will just give it to you.

You could end up with two houses and neither of them liveable.

If you are that stuck sell and downsize, make sure its the best fit for you.

Original poster
pinkingshears · 19/04/2025 12:03

I can afford where I live but it is not suitable for my mobilty needs (or adaptable)
As I, and current house, deteriorate, it will only get worse so it needs selling up.
The 'other' property is being sold low by an administrator. Others have sold locally for similar prices. Once it's bought I could access family money/help for reno, but not to buy it first sadly. Yes it's a big stretch but I could end up with somewhere suitable for my needs and for young person, paid up (or at least half my current mortgage), warm, safe and comfortable. That's not a 'mad' idea.

I should have started a thread which said: equity of 175K, income 22K (benefits based) wish to borrow 44K before I sell - is it possible? It's a yes or no really.
I appreciate the posts which have made points about what to be mindful of, thank you. I'll come back and let you know if I get anywhere.

OP posts:
FiveBarGate · 19/04/2025 12:08

CheesyRaver · 18/04/2025 12:13

Will you be entitled to UC with two houses? I think not. Pip and ca would be ok but you'd have to declare the second home to UC and it would be stopped.

Plus the OP would have savings exceeding 16k from the sale of her property so all means tested elements would stop.

Snarf23 · 19/04/2025 12:14

Surely it all doesn’t matter because realistically even if your offering £45k take it or leave it - that doesn’t work at auction.

It’s an auction which will mean people (probably developers) will also be bidding and will have the means and know how/experience take it a lot higher which means op won’t even get near the house anyway.

Neveranynamesleft · 19/04/2025 12:20

Its £45k for a reason...needs a whole lot of work. It will probably go higher than that price at auction and then there are fees to pay as well. The work will cost a lot as you are likely to be paying someone to do it for you if your mobility issues will limit the work you can do yourself and houses like these always go over budget. One job leads to another....damp, cracks etc, goodness knows what you're gonna find behind that old wallpaper and before you know it you are looking for more cash....Also, is it realistic that you can live in a caravan while the work is done with no idea how long you will be in it and would it be suitable for your mobility ? Do you have a caravan now or will you have to buy one as a decent sized one that will keep you warm won't come cheap. I think you need to have a serious rethink on this one.

77Fee · 19/04/2025 12:38

If you really want this property sell your place first and move to rented while you renovate. No idea how that would affect benefits though.

butterfly0404 · 19/04/2025 12:50

Go for it if you think you can make it work but your plan has a lot of variables. It will only work if you get it at that price, if your current home sells and sells for what you think it will.

If it does sell, current conveyancing is anything from 3 to 7 months.

Tradesman are 300 quid a day plus materials which are premium prices.

You'll also be paying second home stamp duty, and council tax, 2 lots of utility charges. Your benefits will stop.

Best of luck, would love to know how you get on x