A “together loan” is a unique type of mortgage option that allows homeowners to combine a traditional home loan with an additional loan to cover the deposit or other related expenses. This type of loan is designed to help individuals or couples purchase a property with less upfront capital.
The structure typically includes two loans: one is a standard mortgage for the property’s value, and the second loan is an unsecured personal loan or a second mortgage. This arrangement helps buyers who may have difficulty saving for a deposit or face challenges with a large down payment.
Key Features of a Together Loan
- Dual Loan Structure: The main benefit is the combination of both secured and unsecured loans, allowing the buyer to cover the deposit and additional costs while still securing a mortgage.
- Flexible Terms: Depending on the lender, together loans offer a range of repayment options and terms that cater to different financial situations.
- Higher Borrowing Potential: This arrangement can sometimes allow for a higher borrowing capacity, especially when it comes to buyers who might not meet the typical deposit requirements for a single mortgage.
Who Should Consider a Together Loan?
Together loans are particularly beneficial for first-time homebuyers, people with limited savings for a deposit, or those with non-traditional income sources. It can also be useful for individuals looking to consolidate other types of debt alongside their mortgage.
Conclusion
A together loan is an effective solution for those who need a bit of extra help securing a home. By understanding how it works and its potential benefits, you can decide if it’s the right fit for your financial needs and long-term goals.