Index Profit Share

Profit share linked to the Halifax House Price Index

index-profit-share-houses

The Index Profit Share mortgage is designed for:

  • buy to let clients
  • high net worth*
  • homeowners who want to borrow for business purposes*

* Subject to CCA exemptions, please see lending criteria for further details.

How It Works

There are no monthly payments – so, no cashflow strain.

Instead, at redemption, clients will repay the initial loan plus a profit share which is linked to any growth in the Halifax House Price Index (subject to a Minimum Repayment Amount).

You can see an example of how this works below (see Repayment section).

Product Overview

IPS

  • Minimum Repayment Amount determines the minimum which is payable as the profit share.

Repayment

There are no monthly payments. Instead, clients repay the initial loan plus an amount linked to the growth in the Halifax House Price Index subject to the Minimum Repayment Amount plus any associated interest.

 

IPS 2

+ Interest is calculated daily, compounded monthly

Fees

  • Valuation Fee: From £234 – please see our lending criteria for details
  • Telegraphic Transfer Fee: £35
  • Arrangement fee: typically 2% of the loan amount which is deducted from final advanced amount
  • ERCs: IPS 100 – 5% for first year
    IPS 200 – 5% for first 2 years

Eligibility

Available to buy to let clients, high net worth individuals and clients raising capital for business purposes*.

*Subject to CCA exemptions, please see lending criteria for further details.

Important Information & Risks

The client must repay the loan by the end of term. If the client has not repaid the loan by the end of its term and either does not have sufficient savings or is not able to arrange another mortgage, then they will need to sell their property. Property may be repossessed if the loan is not paid when due, as a last resort.

If the value of the Halifax House Price Index rises significantly, then the loan may cost more than a traditional mortgage.

The amount the client will repay on the loan is not known at the outset and depends wholly or in part on the change in the Halifax House Price Index.