A concessionary purchase will be the best way to obtain your property without spending your entire bank savings on the mortgage deposit, but do you know about it?
Mortgage Experts Online are accredited advisors in mortgage concessionary purchase who can help you to select the right type of concessionary purchase mortgage available on the market.
What is a concessionary purchase?
This term is used for any property, which is purchased for less value than its market price. Many of you must be aware of the term ‘BMV’ that stands for ‘below-market value’. All such terms can also describe this concessionary purchase.
This is a type of loan used for buying any property that is less than the market value. Concessionary mortgages are used to buy any property that is sold at a much discounted price by:
There are a few situations that make it much easier to obtain a mortgage than others. As an example, mortgages involving any family members can be a lot easier to get rather than if you buy from any private seller.
What are the factors that make you eligible?
The following are the factors that may affect your eligibility for this mortgage:
Few listed buildings may appear riskier for lenders to offer mortgages, as they may appear to be a little more difficult to sell in the future if repossession is required.
Your lenders will like to see your income proof so that they will be confident that they will get the repayment deposits regularly from you.
Usually, a standard term of the mortgage is 25 years; hence a few lenders may not prefer to provide a mortgage to any elderly applicants.
You can get the best rate by putting down higher deposits as much as possible.
It is not always necessary to have a clean credit history, but a specialist lender will be needed in case you have got bad credit history.
How to obtain a concessionary purchase mortgage?
As far as the process is concerned, it is more or less similar to any standard mortgage application; however, you may expect that your lender will place more scrutiny to know the property’s market value. Also, they will like to know the reason for your buying the property lower than the market value.
For example, whether you are buying this property from any family member or any developer has offered you a special discount, etc. You may know more about this mortgage application process and also the documents that you have to provide from the Mortgage Experts Online.
Besides getting your application for a mortgage approved, you will also like to secure that you may get the best possible deal, and therefore you must seek advice from a certain professional before you go ahead.
You can find many mortgage brokers who are specialized in such concessionary purchase deals. They also know exactly which type of lenders can offer you the best rate of interest on them.