Flexible mortgages are among some of the new mortgage packages that have been created to cater for the modern day mortgage market.
Today’s mortgage market has become more exciting and therefore this has led to an increase in variety and diversity of mortgage packages being offered to borrowers.
Essentially, a flexible mortgage is paid back in varying amounts. By way of example, borrowers whose income includes a significant but seasonal income might make use of seasonal payments to make overpayments, thereby reducing the term.
Housing Finance has introduced a cyclical mortgage product which is flexible to individual circumstances.
This is especially useful for self employed borrowers and those with a variable income since they are not penalized for additional capital repayments or if payments are not made monthly.
With its all-in-one design, this product can save clients a significant amount of interest while it speeds their debt reduction.
Plus, since it frees up money on a monthly basis by helping clients to smooth out monthly cash flow and lower their debt costs significantly, it can help clients to increase their investment activities.
Flexible mortgages are particularly suited to today’s lifestyle, where jobs for life are virtually unknown, and suite those either in business or plan to change from a full time career to run personal business.
Housing Finance’s Cyclical mortgage product offers flexible repayment terms to match a customers’ business' cash flow, either on quarterly, semi-annual or annual repayment.
The Cyclical Mortgage and Makao, a product for home builders, present vastly different risk profiles, requiring risk management skills that do not naturally emerge from disciplines and training associated with traditional mortgages.
The Makao concept was recently introduced to provide potential home owners with a one-stop solution. Housing Finance in conjunction with a consortium of professionals in the building process are managing the whole process on behalf of the prospective owner.
The risk profile of the mortgage industry is changing in response to the demand created through customer preference.
Customers are demonstrating more than ever their increasing expectations of personal service and a mutually beneficial relationship with their financial institutions.
In addition to the traditional community value of home ownership, these trends mean that mortgage lending has multiple roles across the distinct phases of customer life styles that give rise to key product opportunities.
The risk profile of the mortgage industry is changing in response to the demand created through customer preference.
