Terms about things that might happen
Choosing the wrong loan can be inflexible, unnecessarily expensive and even
inadequate for your needs. This is where our deep knowledge and expertise is invaluable.
- Portability: This allows flexibility where the loan can move over to another property; however, there are usually additional charges, including valuation fee, registration fee and lender’s fee.
- Redraw: Allows a borrower to access extra repayments they have already made on their mortgage, that are above their required minimum repayment.
- Break costs for a fixed rate: If you have a fixed-rate home loans and wish to switch into a variable or other loan there may be ‘break costs’ levied by the lender. This is an agreed charge for paying out your loan, or breaking the loan agreement, early. It is important to take account of any break costs associated with getting out of a fixed loan.
- Line of Credit: With this type of loan, you can access funds up to your approved limit at any time. A disadvantage is that the interest rate is usually higher than Standard Variable Rate and Low Rate Basic Loans.
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