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Tailored Term mortgages

Hinckley & Rugby for Intermediaries offers Tailored Term across its entire mortgage range.

What is Tailored Term?

Our Tailored Term is a ‘made-to-measure’ add-on element which can be applied to any mortgage from our product range. It is customisable and allows multiple applicants to share the cost of the mortgage over separate time frames.

Here’s how a Tailored Term could work for your client, using the example of a Joint Borrower Sole Proprietor mortgage:

The application:

  • A first-time buyer requested £150,000 to purchase her first home
  • Dad wanted to help with the financial side so agreed to join the mortgage on a joint borrower sole proprietor basis
  • Daughter, 25, could afford £90,000 over 30 years in our assessment of affordability
  • Dad, 62, could afford £60,000 over 20 years in our assessment of affordability
  • The total debt was affordable as a joint mortgage

We then compared the monthly payments* with and without our Tailored Term element, based on an indicative rate of 3.49%:

Mortgage approved at 85% LTV.

*Example figures based on an indicative rate of 3.49%. The overall cost for comparison is 5.1% APRC. Actual figures may vary based on your clients’ circumstances. Please get in touch using the options below for more information.

Whilst both parties are still jointly responsible for the combined mortgage debt over the longest term, the added Tailored Term element has allowed the payments to be structured with £90,000 being paid over 30 years and £60,000 being paid over 20 years.

If you’d like to know how your clients could benefit from a Tailored Term mortgage, please speak to us 01455 894084.

Important:

All borrowers are equally liable for the total debt for the full mortgage term. No borrower(s) will be authorised to be released from the covenants of the mortgage until affordability of the total debt can be demonstrated by the remaining borrower(s).