Applying for a mortgage has never been easy. There are multiple things that must be considered at the same time and if you miss any of the major points of concern, you might land in trouble. Concessionary purchases are a great bang for the buck, but you must always Finance Hunt Lifetime Mortgage consult an expert before applying for them.
Mortgage Experts Online is a UK based agency that provides expert mortgage application advice online. You can get all the required insights on your queries such as concessionary purchase mortgages from the comfort and safety of your home. Besides that, every mortgage application that they help in developing is curated specifically to fit your requirement.
What is a concessionary mortgage?
To put it in simple terms, it is the purchase of a property at a price that is lesser than the market price. Usually, it occurs between related individuals. However, there are other types of concessionary mortgages too, like parental concessionary mortgage, landlord concessionary mortgage, employee concessionary mortgage, developers’ concessionary mortgage, etc.
Eligibility for concessionary mortgage
There are multiple factors that impact your eligibility of making a concessionary mortgage purchase.
Some of them are:
- Property details – the listed buildings are often risky for lenders to provide on a mortgage because they are very difficult to be sold especially in case of repossession.
- Income – your income proof is a very relevant factor when it comes to concessionary mortgages. The lenders would obviously require some sort of promise that you are in a financial state to repay the mortgage.
- Length of the mortgage – usually, mortgages extend to a term of 25 years. Oftentimes lenders hesitate from providing a mortgage to early applicants and thus those borrowers who want a mortgage for a shorter time span are required to establish their affordability.
- Deposit amount – higher the deposit you make, the more the chances of you striking a deal at the best prices available.
- Credit history – even though it plays a less significant role, but meticulous lenders might require your credit history to be clean to render you eligible for a concessionary mortgage.
Caveat
Many lenders never allow parents to stay in the property once it has been sold. This is done because there is always a possibility of some dispute regarding the ownership of the property which may arise. However, some lenders allow the parents to stay on the condition that they sign a waiver of their rights over the property.
Even though the conveyancer represents both the parties to a transaction, it is always advisable to seek some independent legal advice prior to making any binding commitments. This is done so that each of the parties fully understands the nature of their undertaking and no one is left in dark.
Conclusion
Reaching the right person for mortgage advice can be the best decision that you make, and adopting some wrong advice or acting negligently in such cases can give you a headache for life long. You must always find the best experts who deliver neutral advice to you and help you at every step of the mortgage process.