Obuka Finance

Virgin group is preparing for a return to the mortgage market and wants to obtain a licence to become a High Street bank, billionaire founder Sir Richard Branson has revealed.

Branson, who failed in an attempt to acquire beleaguered northern rock in October 2007, said:”We are going to get back into the mortgage business and will become a bank either by acquisition or by getting our own banking licence. You will see us become a consumer bank within the next couple of years.’

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If you have enough equity in your home, you may be able to turn some of it into cash with a secured loan or remortgage

This will be probably, the biggest financial commitment you will make so helpful guidance is essential. It is important not to over stretch yourself and plan that your future borrowing can be met and suits your needs.

Subject to satisfying the individual lenders criteria a lender may offer to lend money to purchase a property in the form of a mortgage. A residential mortgage which is a loan secured on your new home means that if you are unable to service the loan they own a large percentage of your home and can repossess that property if you are unable to service that loan correctly. You will only receive a mortgage if you match their lending criteria.

This is unlike a unsecured loan, for example a personal loan from a bank. There are many issues and components to a mortgage that should be understood. For example what is loan to value, early repayment charge, stamp duty, debt consolidation, self cert, disbursements, deposit and mortgage arrears. Take note that some mentioned are actual mortgage products and options which may not be included within a mortgage as a component.

You can potentially save a lot of money by choosing the right mortgage for you, insuring it is the most suitable mortgage to meet your current needs and circumstances. But your mortgage is a long term commitment and the deal that you take out should match your requirements. For example if you plan to only live at the property for a while due to job transfer you may consider having a portable mortgage or a home loan without early repayment charges. If you redeemed the mortgage early high penalty could be charged. As guidance how an early repayment charge can apply for example by taking out an incentivised product such as fixed rate, discounted and capped rate these could incur early repayment charges after the incentive has expired.

Think Money offer mortgages to suit people in various financial situations. If you’re looking to take out a mortgage, contact one of our expert mortgage advisers today.