125% Mortgage

One Hundred and Twenty Five Percent Mortgage

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Since the credit crisis these type of products are no longer available and lenders have steered away from this type of high risk product.

This is what the product was:-

Changing circumstances can adversely effect your ability to service the loan. It must also be realised that although you may wish to consolidate unsecured debt for example credit cards and loans you will be placing unsecured debt on to a secured loan.

A typical example might be where 95% of the mortgage consists of a secured loan on the property and the rest, the extra 30 % is an unsecured loan. The two amounts will normally be at the same rate which could be for example fixed or variable and both will run the same term. Some terms may stretch to 35 years long.

The advantage of a long term is to be able to have lower monthly repayments providing the mortgage is capital and repayment. However the downside would be the large amount of interest you will be paying to a lender over 35 years, the long term could possibly take the client passed their retirement date and servicing the loan should be considered. Ideally if you are able to make regular over payments along side your monthly mortgage payments or make large lump sum overpayments you will reduce the term of the loan and make saving on the total interest you will be paying back to the lender.

Advantage :

You may potentially purchase a home if you had no savings for a deposit and solicitors fees etc. Or a possible way of a large remortgage

Disadvantages :

Higher interest rate

Few lenders offer a such mortgages so choice is limited

Not available as a Self Certification loan (self cert)

Not available to clients who have an adverse credit rating (bad credit)

We can offer business mortgage advice on unregulated commercial finance only.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for broker advice, the precise amount of the fee will depend upon your circumstances and be confirmed in writing.
We are not regulated by the Financial Services Authority who do not regulate some aspects of commercial finance, personal finances, buy to let and overseas property lending.