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Owner finance

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So I’ve just come across owner finance.

It might be an option for me shifting my property.  In desperation I’m considering accepting £110k deposit and £1000 per month until the balance of £290k is paid off.

I know very little about this route, anyone here do it?

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Hi @foster

I'd personally not heard much about it before, but from a bit of desk research, I understand it's where the property seller finances the purchase directly with the buyer. As the seller, you can win in this scenario via the interest on the repayments, but you're also assuming the risk should the buyer default on the repayments.

This site breaks down what's involved in owner financing, and the pros and cons; https://www.investopedia.com/terms/o/owner-financing.asp#:~:text=Owner financing is a transaction,costs of a bank intermediary.

So my questions at this stage would be - how much interest would you charge on the monthly repayments, and does your desire to shift the property outweigh your feelings about assuming the risk on any defaulted payments?

Mark Rocks
Community Builder and Content Writer




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