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Consider the benefits of 125 percent Mortgages

125 percent mortgages can be beneficial to many borrowers. What they do is allow 90 to 95 percent of the property value to be loaned just like a typical mortgage. However, the balance is loaned unsecured. They are risky, which is why these types of loans can be hard to find, especially when the economy is not doing well.

There are still companies that deal in 125 percent mortgages such as Alliance Leicester and others that deal in 100 percent mortgages, which is a similar program. These companies include Northern Rock, Mortgage Express and BM Solutions. Mortgages.co.uk is another company that allows you to find out about 125 percent mortgages and has useful information weighing out the advantages and disadvantages.

There are a few benefits to having a 125 percent mortgage. One such benefit is the fact that you can exceed the 100 percent and not have to look for a secured loan elsewhere through a different lender, which can cost you more in the long run.

The problem with this type of loan is that the interest rate is typically far more than on a traditional mortgage. You may be able to get a loan of this sort even with bad credit. Although creditors will base their findings on past credit history, bankruptcy, repossessions and other criteria, you can still apply and may be accepted. Bad credit is not the final answer on you being able to receive a 125 percent mortgage. The best way to find out is to locate a company that deals in these mortgages and apply through them.

 

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