Housing Finance Flashcards
1
Q
Factors to consider when choosing a mortgage
A
Interest rate Incentives offered eg lower incentives for first time buyers for year one Early repayment scheme Break from repayments charge Types of interest
2
Q
What are the 3 types of interest
A
Fixed - cannot change no risk if ECB goes up
Variable - goes up and down with ECB
Tracker - usually 1% higher then ECB
3
Q
What are conditions to qualify for a mortgage
A
Amount to be borrowed Deposit - 10% on 220000 or 20% over 220000 Credit history Length of mortgage Good investment for lender
4
Q
What are the types of mortgage
A
Annuinty
Endowment
Pension
5
Q
What act protects a mortgage borrower if a spouse dies
A
Consumer credit act
6
Q
What happens to money invested into the stock market in an endowment or pension mortgage
A
Invested into the stock market and at the end of mortgage withdrawn and used to pay off outstanding balance and surplus regained
