Can I buy a flat and move in and not pay anything until my current property is sold?
Posted on 4 March 2008
I will be 75 in October. I live alone, am disabled, have a fixed retirement income and need to sell my bungalow and purchase a flat in town. Is there a way that I can buy a flat and move in and not pay anything until the bungalow is sold?
Regards, Michael
Dear Michael,
This is a difficult one and I am reluctant to advise that you take any sort of credit at all, given that it is a risk to your home.
Theoretically, a bridging loan would suit you, and you would need one where they 'roll-up' the interest every month and add it to the debt (instead of you paying a monthly mortgage interest payment). You need to use a broker to help you arrange this as they would need to call the lenders and negotiate your situation individually, as your age and the need for a 'roll-up' facility would take you outside of most lenders' standard policy. Our sister company John Charcol offers this sort of advice and service. Their number is 0800 71 81 91 and they can charge a fee of up to 1% of the loan.
However, I really think that you are best to avoid loans, mortgages or credit at all, and put the bungalow on the market at a sufficiently competitive price that it sells quickly and you can buy the new flat outright.
Categories: Bridging loans, Mortgages in retirement
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