125 per cent Mortgages and Remortgages are no longer available
125% mortgages and remortgages have been withdrawn from the mortgage market place after the recent issues surrounding the Northern Rock.
Up until the spring of 2008 these mortgages were available to first time buyers, next time buyers or someone wishing to release the equity in their home, by remortgaging, without moving house.
It enabled a home owner to consolidate debts, pay off credit card bills, or raise money for any legal purpose.
First time buyers could borrow enough to buy the property, pay the solicitors bill, stamp duty, and still have enough to decorate or furnish.
Made up of a maximum of 95% secured against the property (a mortgage) and up to 30% (or £30,000, whichever is the lower) as an unsecured loan, but with the same mortgage interest rate applied across both parts, they proved exceptionally popular.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage
On the negative side
Think carefully before securing other debts against
your home. Your home may be repossessed if you do not keep up repayments
on your mortgage
Equity Release Mortgages