Summary
All of a sudden, mortgage lenders love mortgages over £500,000. Great if you can afford them.
Mortgages. The return of the Mega-Mortgage.
Author: Michael Challiner (life insurance quotations)
- Mortgaging for funds
- A new study has found that pensioners are concerned that they will have to sell their homes or take in lodgers to make ends meet.
- Don’t Overstep the Mark
- A healthy deposit is the way to attract the attentions of lenders, when it comes to asking for a mortgage. Show them you can afford it!
- Don’t Overstep the Mark
- A healthy deposit is the way to attract the attentions of lenders, when it comes to asking for a mortgage. Show them you can afford it!
- Watch Out For Quick Fixes If You Fall Into Arrears On Your Mortgage.
- Beware of opting for quick-fix solutions to mortgage arrears. Products such as IVAs and sale and rent back schemes have been heavily criticized and may not be the best option. Borrowers who do face repossession orders should always attend the hearing as courts allow 85 per cent of those who attend to remain in their property.
Previously, prospective borrowers for these mega mortgages have experienced a mixed reception from the lenders – sometimes the lenders would provide the facility but viewed them as higher risk. For that reason lenders typically charged a premium rate of interest. But no longer. The tide has turned.
Mega mortgages have well and truly joined the mainstream and lenders are now competing hard for the business. Instead of facing a premium, borrowers are being offered around a quarter of a percent less than comparable deals for more normal sized mortgages. This is because lenders are increasingly basing their lending decisions on the borrowers ability to afford the mortgage with lesser emphasis being placed on the security provided by the property. It also helps that interest rates remain low. (life insurance advisers)
If youre a potential mega mortgage borrower, youll find that the banks will generally be the most welcoming. Compared to building societies and other mortgage lenders, banks tend to set higher lending limits. Some smaller lenders still set a cap at £500,000 whilst others restrict the amount theyll lend against an individual property. But perhaps the best way of finding a really competitive mega mortgage is to go through a specialist mortgage broker. In the current market, any broker worth their salt will be able to source a great deal on six and seven figure mortgages.
For example, the Halifax will lend up to 90% on a 4.49% fixed rate for a two years on mortgages up to £2 million. And the arrangement fee is just £499. If youve got a larger deposit, at least 25%, then there are several other deals around at 3.99% - again for a two year fix usually with a fee of just a quarter of a percent.
Latest House Market Facts (medical insurance)
In March, the average achieved sales price was 94% of the asking price.
The average number of viewings to sales was 11.
During March house prices in England and Wales rose by 0.5% driven by buoyant London market. London prices grew by 1.1%. (medical insurance)
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