Niche mortgage products are mortgages that are not run-of-the-mill and are modified to take into account special circumstances or properties. Examples of niche mortgage products are:
Sub Prime Products
Sub prime products are for people who do not fit high street lender’s lending criteria. This tends to be due to past credit problems such as missed payments, county court judgements or bankruptcy, which makes the borrower ineligible for standard mortgage deals. Sub prime products tend to have higher interest rates as the borrower is considered a higher risk. If you feel that you have credit issues or have been refused by your high street lender it may be worth approaching a broker specialising in poor credit or sub prime mortgages as they are in a better position to find the right “fit” in terms of lenders for you.
Self-build products are for people building their own property or renovation projects. Lenders usually release the money in stages as they assess the building progress throughout. Some will ask that you have the plot of land beforehand whereas others will provide lending for this too.
New build Products
New build properties can be great for people wanting to move up the property ladder. They tend to have fewer structural problems than an older house as well as allowing more personalisation over the interior design.
It is worth noting however, that not all lenders are willing to provide a mortgage for a new build property – flats in particular. Those that do offer deals for new builds tend to have certain limits on the overall amount you can borrow. You should ensure that you can secure a mortgage on the property before committing to anything. You could be entitled to apply for Government backed Help to Buy schemes.
It is worth noting that for all niche mortgage needs, it may be a good idea to speak with a specialist to see if they can access better rates than what you have been able to acquire yourself.