There are a lot of people who are not aware of the concessionary purchase. This article is for all those who don’t have any idea about the concessionary purchase. What is a concessionary purchase? A concessionary purchase is nothing but a property that is purchased for a lower price, usually less than the market value. You might have heard about BMV (Below market value). This term is also used for concessionary purchases.
What is a concessionary mortgage?
A concessionary mortgage is nothing but a loan that is used for buying a property for less than market value. You can utilize this loan when the below people from categories sell a property giving a good discount.
- Employers
- Landlords
- Property Vendors
- Family Members
- Developers
Getting a loan is easier when you buy a property from any of your family members rather than buying from a private seller. If you do not have any idea about getting a mortgage then get in touch with the team of Mortgage Experts Online. By choosing them, you can save your time and money on the mortgage for a concessionary purchase.
Who can offer you concessionary purchases from your relatives?
Sellers should be brothers, parents, either sisters or grandparents. Some lenders grant a mortgage to you if the sellers are stepparents, aunts, uncles, or cousins. Most of the lenders generally ask you to allocate around 5% to 10% as a mortgage deposit. It can be from your savings.
What are the pros and cons of concessionary mortgages?
Pros
- You can keep your properties within your family by choosing this option.
- You can pass on your properties to your grandchildren or children at an affordable price.
Cons
- You should inform your lender that you are selling your property below market value.
Will the buyers allow sellers to live in that property after the sale?
No, this does not happen in any case. Most of the lenders expect the lenders to move out once the sale is completed. However, it is always better to take suggestions on this from an experienced mortgage broker. When you contact a mortgage broker, he or she will let you know which lenders suit your needs perfectly. This means you can save a lot of time here.
Is it possible to get a concessionary mortgage with bad credit?
It is possible only in a few cases. Some of the different types of bad credit include bankruptcy, no credit history, defaults, low credit score, poor credit history, late payments, IVAs, CCJs, and missed mortgage payments. The good news is some lenders provide mortgages even to individuals with worse credit issues.
Bankruptcy and repossessions are generally considered as worse credit issues, while the late payments and poor credit score are somewhat acceptable. Every lender will have different conditions to approve a mortgage. In simple words, they will assess the risk percentage and approve a mortgage. By this time, you would have understood that some lenders approve the loan, while some do not.
Find a good mortgage broker and take his suggestions to stay with peace of mind!
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