frequently asked questions
What is a mortgage?
A mortgage is an amount of money borrowed from a lender (usually a bank or building society) either to purchase a property or to re-mortgage a property that is already owned. This money is then repaid over a predetermined period of time with monthly payments of either capital and interest or interest only. This borrowing is secured against the property and/or the land the home is sited on by way of a legal charge.
What different types of mortgage are there?
The two main types of mortgage style finance products are Repayment (Capital and Interest) and Interest Only.
What is a repayment mortgage?
This type of mortgage is repaid with monthly repayments that consist of both Capital and Interest. The balance of the mortgage will decrease after each monthly payment has been made.
What is an interest only mortgage?
The monthly repayments to this type of mortgage consist of just interest payments. The borrower would usually take out some form of savings vehicle (endowment, ISA, etc.) at the same time as taking out the mortgage and this would be used to repay the mortgage once the savings had reached the same value as the mortgage.
How much can I borrow?
The maximum loan amount is £25,001 and the maximum loan amount is 75% of the value of the Park Home. The only other factors which will affect the amount you can borrow are, the purchase price of the home, the amount of deposit you have available, and the amount of income you receive.
What if my credit history is poor?
There are lenders that are sympathetic to borrowers with a poor credit history (defaults, CCJ's etc). It is often prudent to obtain a copy of your credit report before applying for a mortgage and this can be obtained from either Experian or Equifax for a nominal sum.
What are the age limits for mortgage lending?
To apply for a Park Home Mortgage Style finance product, you must be over 21 and under 70 years of age, and the finance must be repaid by the time you are aged 75. The maximum term of the finance available is up to 20 years.
How long does it take to re-mortgage?
On average it will take between 3-4 weeks.