Category: MORTGAGE APPLICATION

MORTGAGE APPLICATION

  • Should I be worried that my house has heave?

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    Heave in a house refers to the upward movement of the ground supporting the foundation, often caused by soil expansion due to moisture changes. This can lead to structural issues in a house. Whether you should be worried depends on the severity of the heave and its impact on your property. Here are some factors… Read more

  • Drawbacks of an equity share mortgage

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    An equity share mortgage, also known as a shared equity mortgage, is a type of home loan where the borrower and the lender (or another party) share ownership of the property. While this type of mortgage can make homeownership more accessible, especially for first-time buyers, it also comes with certain drawbacks. Here are some of… Read more

  • Importance of a local authority search

    A local authority search, specifically the CON29 form, is a critical part of the property conveyancing process in England and Wales. It provides detailed information about the property that may affect a buyer’s decision. The CON29 search is divided into two parts: CON29R (required) and CON29O (optional). Here’s a detailed overview of what each part… Read more

  • Sharia mortgages: the Murabaha method

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    The Murabaha method is a common structure used in Sharia-compliant mortgages, which adhere to Islamic law (Sharia). Sharia prohibits the payment or receipt of interest (riba), so conventional mortgages are not permissible. Instead, Islamic financing uses structures like Murabaha to facilitate home ownership while complying with religious principles. Here’s how the Murabaha method works in… Read more

  • Hybrid lifetime mortgages – what are the benefits?

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    Hybrid lifetime mortgages are a type of equity release product that combines features of both lifetime mortgages and interest-only mortgages. They allow homeowners, typically aged 55 and over, to borrow against the value of their home while retaining ownership and having the option to make voluntary interest payments. Here are the benefits of hybrid lifetime… Read more

  • Chancel repair liabilities – what you need to know

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    Chancel repair liability is an ancient and somewhat obscure legal obligation in England and Wales. It requires some property owners to contribute to the cost of repairing the chancel (the part of a church near the altar) of a medieval parish church. This liability can apply to both residential and commercial properties, and it stems… Read more

  • What is a flexible mortgage?

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    A flexible mortgage in the UK is a type of home loan that provides the borrower with various flexible features not typically available in standard mortgages. These features can offer greater control over how the mortgage is managed and repaid. Some of the key characteristics of a flexible mortgage include: These features provide significant advantages… Read more

  • What is a limited liability guarantee mortgage?

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    A “limited liability guarantee mortgage” is not a standard term in the mortgage industry. However, based on the context and common mortgage terminology, it might refer to a specific type of mortgage arrangement or structure that involves limited liability and guarantees. Here’s a breakdown of what this term could potentially entail: Limited Liability Company (LLC)… Read more

  • Sharia-compliant home purchase plans explained

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    Sharia-compliant home purchase plans, also known as Islamic mortgages or Halal mortgages, are financial products designed for Muslims who wish to purchase property in accordance with Islamic law (Sharia). These plans differ from conventional mortgages in terms of structure and principles, aligning with Islamic finance principles that prohibit interest (riba) and encourage risk-sharing and ethical… Read more

  • What income is included in a lender’s affordability assessment

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    In the UK, when a lender assesses affordability for a mortgage or other loan, they typically consider various sources of income to determine the borrower’s ability to repay the loan. The income sources generally included in a lender’s affordability assessment can vary slightly depending on the lender and the type of loan, but they commonly… Read more