| |
- Self
Employed Help Index
- Site
Map |
| |
|
|
| |
But-To-Let
As A Retirement Plan ! Many people nowadays rent out a
second property as a way of saving for retirement. When a
person needs to they will either sell the property for a lump
sum or use the rent as a top up to their pension. Many
mortgage finance companies now offer specialist interest only
buy to let packages that make entering the property market
easier than ever.
© Copyright 2007 www.Self Employed Help .co.uk ~ All Rights Reserved.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
|
|
|
|
 |
100 Percent Self Build Mortgages
|
Whilst it may be rare, it is possible to find a 100 percent self build mortgage. Basically it is where a mortgage lender gives you 100% of the land costs for your self build project. However it isn’t all as good as it sounds and once you actually do find a lender who will offer you a 100% self build mortgage, you will then realise exactly why it is not all that it is cracked up to be!
The Advantages and Disadvantages to 100 Percent Self Build Mortgages
The advantages of a 100% self build mortgage include the fact that you do not have to pay a deposit because the lender is paying 100% of the land costs. You get the money in stages so that you never have to worry about building costs and also it helps you to put your finances into better perspective as when you get one large lump sum you can tend to spend it on things which you do not really need. So, smaller amounts of money will help you to focus on the task in hand.
It is possible to choose whether you want the repayments at the beginning of a building stage or at the end. Generally people choose the beginning because they then do not have to worry about any financial troubles that way. However it is completely up to you and obviously it also depends upon your lender and what they are offering.
As for the negatives of a 100% self build mortgage, the main one is the fact that they are not easy to come by. Most lenders will not lend you the full 100% land or construction costs, the highest is usually around 95% and even then that is also hard to come by. So availability will be a problem.
Another disadvantage is that the interest rates are likely to be a lot higher than they would usually be. Lending 100% costs is risky business for the lender and they will make sure that you realise that by highering the repayments.
Overall it is worth finding out all of the negatives as well as the positives before you take out a 100% mortgage. That is of course if you can find one!
Self
Employed Loans Mortgages Insurance
|
|
|
|
|
|
