Innovations in mortgage administration software mean that you can now literally select precisely how you structure your mortgage – including the rates you pay, the type of products that make up your mortgage, the repayment methods and the term of each part of the mortgage.
Commenting on the new mortgage, Philip Dearing, chief executive of the Market Harborough, said: “This mortgage type, whilst conceptually difficult to grasp initially, is simple to operate once set up. A potential customer simply calls or emails the Society, speaks to one of our Certified Mortgage Specialists and explains their requirements. Products do not need to be chosen from the Society’s standard mortgage product range but can be negotiated direct with the specialist.”
As a practical example, a customer who wants a mortgage of £300,000 may opt to split their loan as follows:
Part one: £150,000 on a 20-year capital and interest basis using a tracker product – no penalties at any time. Monthly Cost: £978
Part two: £20,000 on a 5-year capital and interest basis to fund a car purchase on a 1% lifetime discount off SVR – no penalties at any time. Monthly Cost: £376
Part three: £10,000 on a 5-year capital and interest basis to fund a new kitchen on a 2-year fixed rate. No overhanging penalties. Monthly Cost: £186
Part four: £21,000 over 3 years on a capital and interest basis to fund one child’s university fees on a 3-year fixed rate scheme. No overhanging penalties. Monthly Cost: £623
Part five: £99,000 on an interest only basis over 15 years to coincide with a maturing investment product on a discount scheme – penalties on a sliding scale. Monthly Cost: £309
Total monthly cost: £2,472
Up to 240 parts to a mortgage are available, flexible features are incorporated and funds can be used for virtually any purpose. “This type of mortgage is genuinely tailored and negotiated to a customer’s individual requirements. We are optimistic that this highly personal approach using sophisticated systems will prove popular with a segment of the mortgage market,” continued Dearing.