Is A Family Springboard Mortgage Right for Me?
Are you planning to become a property owner and shelter your family with your dream home?
With time, the hunt to own a home will get tough; so many people are turning to family and preparing to own a home for future security. Many loan options are available, but among all, people are more biased towards family springboard mortgages. With this new terminology comes numerous doubts like, what is springboard mortgage, is it legit to apply or not, and many more.
Let’s dive more into this mortgage and find out whether you should go for it or not. But before that’s, you must know the crisp information about spring mortgage.
Springboard mortgage is a way to get a property ladder with the cumulative support of your family. In short, with the collective savings of your family, you can own your dream home.
To get the 100% of property value, you are required to over a saving account, linked with a mortgage lender. After putting at least 10% of the property value (as security to mortgage lender), you can apply for the full amount. During the mortgage period, buyers can’t withdraw their sum form the savings account. However, post mortgage period, you will be returned your sum with some interest.
Isn’t it a great deal?
But is this a better alternative to conventional mortgage options that can also help you move to the property ladder? Well, the collective support of a family is far better than individual efforts to own your dream home and clear the debts in the shortest period possible.
However, in the family springboard mortgage, in case of a missed payment, your family/friend’s money could be held till repayments are made up to date.
For repayment, you can take the payment term for up to 35 years, which is more than required for any homeowner. And, there is hardly any conventional loan option that gives you such a long period of repayment. For homeowners, looking for small repayment every month, have a springboard mortgage as a smart way to choose.
Coming to the biggest misconception, many people think that first-time mortgage buyers only. However, many mortgage lenders do provide springboard mortgages to existing homeowners as well. So, it’s a win-win deal for first-time buyers as well as pre-owners.
Unlike family springboard mortgages, you also have other alternatives, like adding a guarantor for the mortgage application. Your guarantor will act as a security for the mortgage. Another great option is the gift of a deposit from family members. However, in any of the options mentioned above, you are always suggested to take proper consultation before applying.
So, if you are looking for a no borrower deposit scheme, this family springboard mortgage is an excellent option. When you are getting an attractive deal against numerous other alternatives, why go out for options? Moreover, your bad credit score can also be handled by bad credit mortgage options.
Without any delay, grab this deal and take a step ahead onto the property ladder