Residential Mortgages
Residential mortgages are loans secured against residential property which aim to:
- enable you to own your property
- release some of the value of the property, against which the loan is secured, for another purpose.
- You must declare all relevant information and in particular your credit history.
- You will need to make monthly repayments to the lender for the term of your mortgage.
- You may need to make regular payments to a life assurance plan to ensure that the mortgage can be repaid if you die during the term of your mortgage.
- In the case of an interest-only mortgage you will also need to make separate arrangements to repay the mortgage. If you do not do this, at the end of the term you will have to negotiate new terms or you may risk losing your home.
- Whatever repayment method you decide on, you will need to carry out regular checks to ensure you have sufficient funds to repay your mortgage.
- Your home may be repossessed if you do not keep up repayments on your mortgage.
- The lender may make an early repayment charge if you want to repay your mortgage earlier than you originally planned.
- Your mortgage valuation fee and, in some cases, any initial arrangement fee that you pay the lender may be lost if your mortgage does not proceed. Even if you withdraw your application before a valuation is carried out, you may be charged an administration fee by the lender.
- While the lender will insist on a level of buildings insurance, it is your responsibility to ensure adequate home contents cover is in place.
- There may be changes in the law and Inland Revenue practice, which cannot be foreseen. Tax benefits also depend on individual circumstances.
- If you are made redundant or are unable to work due to illness, you would have to wait for up to nine months before you may be entitled to any help from the State with your mortgage interest payments.