The Furness Building Society has recently launched a new 2-year 70% loan-to-value interest-only mortgage. This is an exciting new product that could be a great option for those looking to purchase a home or remortgage their existing property.
The loan-to-value (LTV) ratio is the amount of money borrowed compared to the value of the property. In this case, the LTV is 70%, meaning that the borrower will need to provide a 30% deposit. This is lower than many other mortgages, making it more accessible to those who may not have a large deposit saved up.
The interest-only aspect of this mortgage means that borrowers will only need to pay the interest on the loan each month, rather than paying off any of the capital. This could be beneficial for those who are looking to keep their monthly payments as low as possible. It is important to note, however, that this type of mortgage does not reduce the amount of debt owed and so borrowers should be aware that they will still need to pay off the full amount at the end of the term.
The Furness Building Society has also included some additional features with this mortgage. For example, borrowers can choose to make overpayments of up to 10% of the loan amount each year without incurring any early repayment charges. This could help those looking to pay off their mortgage sooner and reduce their overall debt.
Overall, this new 2-year 70% loan-to-value interest-only mortgage from the Furness Building Society could be a great option for those looking to purchase a home or remortgage their existing property. It offers a lower LTV ratio than many other mortgages, as well as the ability to make overpayments without additional charges. It is important to remember, however, that this type of mortgage does not reduce the amount of debt owed and so borrowers should ensure they are able to pay off the full amount at the end of the term.