What is a Mortgage Loan?
A mortgage loan is used when an individual or company needs to raise funds to purchase an asset, or for any other purpose, while putting a lien on the property being mortgaged.
How much can you get with a mortgage loan?
Depending on the type of property mortgaged and its location, the Loan-to-value (LTV) can vary from 50-70%.
What are the costs of a mortgage loan?
Interest rates on bridging loans range from 10-15%. There are a few factors that help determine the interest rate bridge loans are set at including:
- Loan-to-value (LTV) of security against loan amount
- Type of security utilised
- Ease of liquidity of security
- Credit profile of the borrower
Other costs that are incurred for a bridging loan include:
- Security valuation fee – An independent valuer is usually engaged
- Legal fees – A law firm will have to be engaged to draft the loan contract
- Arrangement fee – A one-time fee to be paid upon successful loan application
- Early repayment fee – Applicable if duration of the loan be less than initially agreed upon
Do I need a good credit score for a mortgage loan?
Banks usually assess your credit standings based on your credit score, so not having a credit score might make it challenging to get a mortgage loan from a bank.
Rikvin Capital does not require a good credit score for its mortgage loans.
Are you looking for a mortgage loan?
Liaise with a dedicated specialist when you engage us for our mortgage loan services. We will walk you through every step of the loan application.