It just means you might have to shop around to find the right product. Need advice Speak with a mortgage advisor from TurnKey Mortgages. Follow us on Twitter , facebook , or subscribe to our news feed. They now seem to be re-emerging, as more and more lenders offer them.
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If you take out a tracker mortgage, a rise in the base rate will lead to higher monthly payments. This is more of a risk for high-LTV mortgage holders where repayments are already higher. Any rise or fall in the property value will increase or reduce the value of your deposit as a overall percentage.
In a worst-case scenario, your home value could drop by more than your deposit, leaving you in negative equity. Should you then sell your home, you would not make enough back to pay of your mortgage. This will make getting another mortgage deal more challenging.
Follow us on Twitter , facebook , or subscribe to our news feed. The products compared on this page are a collection that Which4u. The product information provided cannot be considered comprehensive and may not contain all the features relevant to you. Products are displayed in no particular order or ranking. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing products. What LTV are you looking for?
Need advice Speak with a mortgage advisor from TurnKey Mortgages. Call Call centre hours are: Mon - Fri 8am to 8pm Sat 9am - 4pm Sun Closed. Search the entire mortgage market What is the mortgage for? As mentioned earlier, this type of financing was fairly easy to secure during the housing boom. They now seem to be re-emerging, as more and more lenders offer them. This was based on data from the Zillow Mortgage Marketplace, an online network of lenders.
Other lenders are following the Bank of America example. So clearly, these products are out there. You just have to turn over a few stones to find them. But there are options. Unlike the options mentioned above, this strategy calls for the combination of two home loans or one plus a line of credit.
The financing strategy is a good example. An added benefit of this strategy: You could avoid private mortgage insurance PMI. This strategy was all the rage during the housing boom. But many lenders stopped allowing it after the market crashed. Noticing a pattern here? Bank let qualified borrowers take out two loans -- one for 80 percent of the home's value and the second for 10 percent, along with a 10 percent down payment -- which lets them avoid private mortgage insurance.
We have received anecdotal reports of lenders offering the version of piggyback loans, as well. But they seem to be a rare occurrence, compared to the products.