Finance

Examples of 100% Finance*

If you raise a loan to fund the 30% for your deposit, the developer will make the payments for this amount on your behalf. See the example below:

30% deposit requires (less £1000 (reservation fee) within 45 days of reservation. Should you choose to borrow the 30% deposit, the developer will pay the loan repayments, for the 30% deposit until completion of the specific unit you have reserved. These payments will then be added to the purchase price upon completion.

Example (sterling): Property price £200,000. £1000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 – £1000 (reservation fee) = £59,000. Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,080 added to the purchase price upon completion.

Due to the significantly discounted off-plan contract price and the capital appreciation during the construction phase, it is anticipated that the £200,000 purchase price will have grown to a property value at completion of circa £325,000.

At this point a 70% loan to value guaranteed mortgage is available and therefore you will be able to borrow up to £227,500, on which the annual interest payment would be £ £15,925 based on a rate of 7%. The rental guarantee of 10% of your purchase price of £200,000 will generate you an income of £20,000 each year, should cover your mortgage payments. If you wish you could retain the £59,000 loan you took out for the deposit, pay the interest yourself each month, from completion onwards, and use the money to invest in a further investment property purchase.

*Subject to status. Terms & conditions apply.

Note: Diamond Estates Worldwide does not give financial or mortgage advice and is not authorised by the Financial Services Authority to do so. All investors should seek relevant independent advice to their circumstances before proceeding.