125% Mortgages
125% mortgages are loans that cover the full purchase price of your property plus up to 25% extra over and above the property value. These usually work as a 95% mortgage with up to 30% available as an un-secured / personal loan on top. The un-secured loan element will usually be at the same interest rate as your mortgage interest rate, which may be a beneficial rate compared to separate un-secured loan rates.
These types of mortgages are normally preferred buy first time buyers that have no deposit available and some degree of ‘other borrowing’ by way of personal loans, credit cards or hire purchase agreements. By consolidating all your ‘unsecured’ borrowing within the new mortgage you may be able to reduce your monthly outgoings. It is highly advisable to seek professional help when considering this type of mortgage.
The overall cost for comparison is 6.5% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case'.
