Raising funds / apartment as collateral

Discussion in 'Other financial issues' started by deco87, 8 Oct 2018.

  1. deco87

    deco87 Frequent Poster

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    77
    Just have 120.000 to buy an apartment for 130.000.
    Separating, problem is partner has the credit history as loans etc were taken in their name.
    Have been in credit union for a while but not a lot in it ...
    Fairly infrequently saver.

    What's my best option for 20 k over longest period ,trying to avoid mortgage. 22 k year , permanent job.
    Thks
     
  2. Monbretia

    Monbretia Frequent Poster

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    1,396
    I'd try the credit union, worth a try anyway.
     
  3. Zenith63

    Zenith63 Frequent Poster

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    126
    Out of interest why are you ruling out a mortgage? It would offer you the longest possible term, at the lowest possible interest rate and you have enough to put down a large deposit to keep the bank happy?
     
    deco87 likes this.
  4. RedOnion

    RedOnion Frequent Poster

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    1,759
    See if you credit union offer secured loans.
    Or failing that, if one of the banks will.
    Rate won't be as low as a mortgage, but by giving them a legal charge over property it'll be less than a standard loan.
    You will have to pay the legal costs, but shouldn't be much when being done as part of purchase.

    Even though you're not looking for much, a bank can only lend what you can afford to repay, so they will have to assess affordability in a similar way that they would with a mortgage.
     
    deco87 likes this.
  5. deco87

    deco87 Frequent Poster

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    77
    I just thought it was not possible