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85-15 Mortgages
naijapower
Posts: 1,393 Forumite
Can anyone shed more light on the 85 - 15 mortgages currently being hawked by new build developers.
Basically, they state you would have to find a mortgage of 85% and they would provide the 15% deposit which eventually becomes like a second charge on the property.
You have 10 years to pay back the 15% as one lump sum. I am told what you pay back is actually 15% of whatever the house is valued at the time of repayment.
Because you dont put down any deposit, these builders have described it as a 100% mortgage.
They claim major lenders like Halifax and Nationwide accept the scheme - Can any mortgage adviser on board confirm this.
Basically, they state you would have to find a mortgage of 85% and they would provide the 15% deposit which eventually becomes like a second charge on the property.
You have 10 years to pay back the 15% as one lump sum. I am told what you pay back is actually 15% of whatever the house is valued at the time of repayment.
Because you dont put down any deposit, these builders have described it as a 100% mortgage.
They claim major lenders like Halifax and Nationwide accept the scheme - Can any mortgage adviser on board confirm this.
0
Comments
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Sorry not very good at linkys but go to this page
http://www.persimmonhomes.com/promotions/national-promotions/first-time-buyers/helping-hand-plus-85-15.aspx
and this page
http://www.persimmonhomes.com/promotions/national-promotions/first-time-buyers.aspx0 -
Many thanks. Found the links useful0
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