125
Loan
Contact
Us
0800 781 0414
It
must be first stated that great care must be taken with these
type of mortgage products as you are borrowing over
and
above the equity within the property. So 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 have 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)
Free
Phone Help-Line 0800 781 0414 Contact
Us
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