20 Nov 2022

Will Mortgage House Accept a Display Home as Security for a Mortgage Loan?

Mortgage House Low Doc Remortgage

Potential borrowers who are interested in applying for a mortgage loan with Mortgage House may want to learn more about the various types of security that are accepted. Mortgage House will accept a display home as security for a mortgage loan. The rental income accrued by the display home is required to be assessed at the normal market rates based on the valuation or existing tenancy agreement. 

Security assets can be described as a form of protection for the mortgage provider and ensures the borrower will make the required mortgage repayments. Security assets allow the mortgage lender to take over ownership of the security asset in question if the borrower does not make the agreed-upon mortgage repayments or defaults on their mortgage loan. The mortgage lender will resell the security asset if the borrower defaults on their loan to recoup the lost funds. 

A display home is a type of home that is used to market and sell houses of the same type. Display homes allow potential buyers to tour and view a house that is similar to the home they are considering purchasing and allows building companies to display their proficiency in home design. 

If you are interested in learning more about the types of security assets that are acceptable for mortgage loans or are ready to apply for a mortgage loan, reach out to the professional Mortgage House lending specialists for more information and specialized assistance throughout the mortgage loan application process.

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