If you need to borrow money, there are a variety of options available to you. One of these is to take a private mortgage. However it’s always good to really research and understand exactly what this entails to help you to decide whether it’s the best option for you.
What is a Private Mortgage?
A private mortgage involves a mortgage where you borrow money from another person or business. This is in contrast to a standard mortgage where you would generally borrow money from a bank.
Why Should You Get A Private Mortgage?
Think about your situation – it’s always important to keep this in mind when finding the right option for you as every person will have a different set of circumstances.
Some of the benefits of a private mortgage are listed below:
Qualifying: if you have a low credit rating or are not able to document your spending history, you may struggle to get a mortgage from a bank. With a private mortgage, you can borrow money even if you do not have a good credit score or the forms required by a bank.
Borrowing from a family member means that you can keep money within your family and both parties could benefit as you will essentially be paying interest to someone you know rather than an institution.
Often you’ll pay lower rates of interest because the set up is between friends or family