Concessionary Mortgages
Concessionary Mortgages offer flexible solutions for homebuyers. Let Fennel Financial help you navigate your options and secure the best mortgage for your needs.
Understanding Concessionary Mortgages
A concessionary purchase mortgage allows you to buy a property for less than its market value, often referred to as a below-market-value (BMV) purchase. This type of arrangement relies on the seller offering a discount on the property’s price, with the reduced value acting as a form of gifted equity passed on to the buyer.
In many cases, lenders will accept this discount as the deposit, enabling buyers to secure 100% of the mortgage without needing additional upfront funds. However, some lenders may still require a partial deposit contribution alongside the discount. It’s important to note that the discount must be a genuine gift, if it’s considered a loan or if the seller retains any form of ownership, it will not qualify as a concessionary purchase.
Concessionary purchase mortgages are particularly beneficial for buyers who may not have a deposit saved but have the opportunity to purchase a home at a reduced price. These mortgages can also help families keep property assets within the family, often involving parents or grandparents selling a property to their children or grandchildren at a discounted rate.
Get in touch
5.0
0 Reviews
Our Concessionary Mortgage Services
Fennel Financial provides a comprehensive range of services to assist you with your Concessionary Mortgage requirements. Our goal is to simplify the mortgage process and ensure you have access to the best possible options available in the market.
Equity Assessment
We evaluate your current equity to determine the most suitable purchase options, ensuring you maximize your financial potential.
Personalised Guidance
Our experts offer tailored advice and strategies to help you navigate the complexities of Concessionary Mortgages.
Why Choose Fennel Financial for Your Mortgage Needs
Fennel Financial stands out as your trusted partner in securing the right Concessionary Mortgage. Here’s why our clients prefer us:
Expert Advice – Our knowledgeable brokers have extensive experience in the mortgage market, ensuring you receive the best recommendations.
Tailored Solutions – We customise mortgage options to match your unique financial circumstances and goals.
Comprehensive Support – From initial consultation to completion, we guide you through every step of the mortgage process.
What Are Concessionary Mortgages?
Concessionary mortgages are a financing option for buyers purchasing a property at a discounted price, typically from a family member or landlord. These mortgages allow buyers to use the discount as part of their deposit, potentially reducing the loan-to-value (LTV) ratio. A lower LTV can make borrowing more cost-effective, as lenders often offer better mortgage rates for borrowers with a larger equity share in the property.
While this type of mortgage is commonly used within families, it can also apply in other situations, such as a landlord offering a discount to a long-term tenant. Buyers who have some savings for a deposit can combine their funds with the property discount to further lower their LTV, improving their chances of securing a more favourable mortgage deal.
Navigating concessionary purchase mortgages can be complex, as different lenders have varying criteria. If you’re considering this option, it’s crucial to get expert guidance to find the right lender and ensure your application meets all necessary requirements.
Book an appointmentFrequently Asked Questions
Have questions about Concessionary Mortgages? We’re here to help.
A Concessionary Mortgage offers more favourable terms, such as lower interest rates or reduced fees, to eligible borrowers.
In many cases, the discount on the property can act as the deposit, meaning you may not need to provide additional funds. However, some lenders may still require a small deposit contribution depending on their lending criteria.
Eligibility for Concessionary Mortgages depends on various factors, including your credit history, income, and the selected lender’s criteria.
While having a poor credit history may limit your options, some specialist lenders offer concessionary mortgages to applicants with less-than-perfect credit. Your eligibility will depend on factors such as your income, affordability, and the overall loan-to-value ratio.
Our brokers will guide you through the entire application process, from assessing your financial situation to submitting the necessary documentation.
The timeline can vary, but with Fennel Financial’s expert guidance, the process is streamlined to help you secure your mortgage as efficiently as possible.
Still have Questions?
Use the links below to get in touch with the Fennel team
