Disadvantages of a Mortgage Credit Deal
Higher monthly repayments. Mortgage Credit deals are more expensive. This will mean higher monthly repayments and may even make it more costly than renting a house;
Higher house deposit. First-time buyers seeking to buy a house with adverse credit will find that a higher house deposit is often necessary. The higher likelihood of negative equity means that a house deposit of at least 25% is needed to get a Mortgage Credit deal;
House repossession. Falling greater than 3 months behind with mortgage repayments is likely to lead to creditor harassment if a satisfactory resolution cannot be reached;
State assistance. Those renting a house are given more state help. Government assistance with monthly repayments on a Mortgage Credit deal is minimal;
Negative equity. In a declining market, a Mortgage Credit and all the associated fees will means that first-time buyers are likely to face negative equity problem for several years.
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