Free £1000s Mortgage Loophole [CLOSED]

MSE_Martin

I've just posted about a major mortgage loophole - as its such a big one and likely to go quick, thought i'd post it here too

http://forums.moneysavingexpert.com/showthread.html?t=88453

CurryKing_2

This is an awesome loophole

SimplyAUser

It is excellent

Probably not for a first time buyer taking a mortgage of £250000...

But it suits me, see the detailed calculations here.

http://forums.moneysavingexpert.com/showthread.html?p=853862&posted=1#post853862

gizzmo_2

How can they afford this? Won't it just make them bankrupt? What then happens if you have a mortgage of 50K with them and they collapse cos MSE'ers have exploited the loophole? Do you still have to pay up?

Not that I'm complaining though - except that I just remortgaged so am tied in for 2 years now so I can't take advantage of this wonderful deal.

BoltonMinx

Ouch, my mate just remortgaged, she'll be gutted

RedOnRed

Seems a bit too desparate a way to go about getting (in the scale of things) a fairly modest cashback.

I got one of these cashbacks with Northern Rock with my last mortgage, which helped pay for our nice kitchen the month after we moved in, but the interest rate was extorniate and was riddled with all sorts of early redemption penalties. Their customer service was also dreadful. Basically, I couldn't wait to get away from them.

There's typically quite a few other costs involved in taking one of these out which I can't seem to se mentioned.

talkshop

Would they give a £143,000 mortgage to someone earning only £17,000 per annum ?

Cannot see how this would help everyone.

Don't forget your first payment can be up to double your normal mortgage payment if you don't know what you are doing, and how on earth would you afford to pay it back?

Seems not worth the hassle for my £50,000 mortgage.

MSE_Martin

Hi folks,

Of course this won't help everyone - you need to have a mortgage less than £160k, but earnings multiple and equity that will allow you as much as possible up to that figure.

I wouldn't consider the cashback paltry though - for some people you will get the equivaqlent of a 3.77% discount mortgage (market beater) and £6,500 in cash on top by following the loophole!

RedOnRed

Hmmm, not entirely convinced. You're making this work on a very specific scenario.

Technically, I could easily take one of these out but feel i'd be better off staying with my First Direct offset mortgage and getting cash easily when I want it at the same rate as my mortgage, with the benefit of optional over payments when I want and account off-setting. All without the high interest rates, fees and heavy redemption penalties complimented with this Loughborough offer.

I'd want to see all of the precise sums done before comitting myself to an imaginary, bare bones, face value case study.

bluep

As with any mortgage product, they are pretty finely tailored personal things - hence not applicable to most people. However, this is a pretty good loophole if it does fit your personal circumstances. For example, it would work ok with our situation if we weren;t tied into a fixed rate for the next few years (as I think more and more people are now, given the unpredictability of interest rates v house prices in the future).

MSE_Martin

RedOnRed, Im slightly confused with the scepticism. This is an enormous loophole if you fit the profile. I've explained how to work out the gain in the thread (just added it). Im pretty sure if your mortgage is less than £150k (and no penalties) you'd be substantially better off with this than with First Direct on pure payment terms

Do have a go at working it out - this really isn't one to miss!