Mortgage Payment Protection Quote
There are a few lenders in the 100% market, but there will be less choice on
interest rates etc.
Those that come to mind are Royal Bank of Scotland, Mortgage Express,
Scottish Widows Bank, Bank of Scotland, Yorkshire Building Society.
Sometimes, there are special broker only schemes. Northern Rock do a 125%
deal (although it is actually 95% + 30% unsecured loan at the same rates).
I cant figure out why the NR do it this way. Now they are a
Bank, they are not constrained by the old B/sco acts so
why dont they do the whole lot as a secured by the one mortgage deed?
Any ideas anybody?
It attracts the punter who has not got a lot of equity in their home. it enables
them to take out a loan that covers their mortgage and a little bit more for
whatever reason they may have. If it was secured only they would be limited in
that respect.
One thing i cant work out. A 12500 pound loan would cost roughly 250 quid a
month over 60 months at 8.9% APR (direct line). But if you ask for 12500 in the
unsecured calculator over 25 years at nothern rock they quote a repayment figure
of 83 quid. Now this is supposed to be at 6.79%. Same rate as the mortgage bit..
So directline loan 12500 divide by 60 months =208.33 pounds =41.667 interest.
Nothern Rock 12500 divide by 300 months =41.667 =41 pounds interest roughly. I.e
interest is the same yet rate seems to be different. i think the answer could be
that nothern rock have payment protection included but this is not clear on
their website. Or is it to do with APR.?