Co-operative Bank has developed a plan to own a house through cheaper mortgages. The program, dubbed Good Home Mortgage comes with flexible repayments that tailored to suit the financial capacity of the prospective home owner.
Some of the key factors that are considered when applying for this loan include type of property to be acquired, the value, location, age of the borrower and income details.
In repaying the loan, home owners have the option of taking fixed or variable interest rates. Additionally, owners who are already members of the Co-operative Bank Sacco Society will enjoy reduced rates based on the form of interest rates they opt for.
Interestingly, customers who take up the loan are allowed to increase their monthly installments if their financial position improves to enable them repay the home loan faster. They will also be given an evaluation report to enable them make a better decision on which home to take or avoid.
The Good Mortgage from Co-op Bank offers:
- A maximum of 95% of the mortgage value, hence you only need to have a minimum of 5% of the amount if your property is for owner occupation.
- We consider a maximum of 50% of your income as what can be applied to repay the facility.
- Costs associated with the process will amount to about 7% of the selling price.
- A clean title, free from encumbrances and where all land rates and rent are cleared.
- For Co-operative societies, requirements depend on the product chosen and the borrowing power limits.
- An account with Co-operative Bank to allow you easier access to the Good Home Mortgage.