Best way to borrow £18,000

[lynn 2]

Hi,

I'm about to buy a house for £118,000 which needs a little bit of work, and so with fees it will be about £128,000 altogether. I have £110,000 cash and so need to borrow £18,000. My original plan was to move in and do it up and sell on next Spring, but now I'm not sure if it will sell for enough if house prices drop in the near future. Therefore, I may have to live in it for longer until the market picks up again. My questions are:

1. Is it best to get the £18,000 by bridging loan? What if I can't sell in the bridging loan period (I may not be working by then and so not be able to get a mortgage)

2. Get a mortgage, and if so, how long would I have to stay in the property to not upset the mortgage lender? 

Thank you.

[DerekT 216]

Hi Lynn

Some alternative options (depending on your credit rating and risk tolerance);

• Family and friends - are you able to ask for a short-term loan? Perhaps offer them 'mates rates' of 3-5% which is far more than they'll get in a bank account;
• Credit card - can you pay for the extras on a credit card and then transfer the balance to a 18-24month interest free card and repay it before the end of the interest free period? 

With bridging and mortgages, I think there may be minimum lending amounts, so not sure if you're able to borrow just to cover the difference. A broker on here will be able to confirm.