Those who are ready to take the plunge from renting to owning a property of their own will have to scrape together quite a bit of money to get it done. This is because properties are some of the most expensive assets to add to a portfolio. There is the actual price of the property and the costs to register it, which tends to involve attorneys. In some cases, consumers are also required to perform some repairs to get the job done. All this can make a huge dent in the savings if the savings are even enough to cover it at all. Mortgages are pretty handy to finance these kinds of purchases, as they allow consumers quite a long-term to repay the loan. Discover whether the Societe Generale Mortgages have what it takes to stand up to some of the best in the world.
See how this range compares to that of HSBC mortgages.
About Societe Generale
A bank that has been around since the 1800’s certainly knows a thing or two about the world of finance and Societe Generale fits into that category. The bank started in 1864 with the eye to increase trade and commerce in France, and by 1871 already had an international branch in London. It wasn’t long after that the bank set its feelers out to other parts of the world. WWI was the catalyst for the Peace Loans and Societe Generale played a big role in putting the country back together again where finances are concerned. Privatization took place in the eighties and the bank was soon on its way to offer a more modernized approach to banking. It weathered the storm of the Kerviel case during the economic collapse of 2008 and is now considered one of the biggest banks in the world.
What to Look For in the Perfect Property
It’s easy to go on a whim and purchase a property that pulls on the heartstrings first. But to get the most out of the purchase and to ensure entering into a mortgage agreement isn’t for nothing, it’s important to make a logical decision.
Is the Property Priced Correctly?
Estate agents and sellers are quick to try and push up the prices of a property as this means more income all round. Usually, this comes up when the banks process the loans as they tend to do their own valuations. In the case of a desktop valuation, they could miss that the property is overpriced. Customers are recommended to get a second opinion if they’re not too sure.
Location is Key
The old property mantra rings that it’s better to buy a fixer-upper in a good area, than the best house on the street in a bad area. Restorations can increase the value of a property in a good area. In bad areas, improvements on a property may just lead to overcapitalization.
Look for Structural Damage Indicators
Cracks and lifting tiles are two obvious things to look out for when viewing a house. Customers who come across properties they’re not too sure about will benefit from requesting a structural engineer to sign off on the property as part of the sale agreement.
Find a Home That Allows Some Growth
Purchasing a property that suits the exact needs at that moment in time, may just cause homeowners to look for another property soon when their situation changes. It’s always recommended to go for the slightly bigger house or the one that allows some conversion in the event of an additional family member or when someone needs to work from home.
Societe Generale Mortgages Product Offerings
Consumers have the opportunity to optimize their taxation with this loan. They also benefit from a repayment structure that favors those who wish to pay a lump sum at the end of the term.
- This loan allows customers to only pay the monthly interest and borrower insurance premiums.
- Furthermore, this loan is linked to a life insurance policy of equivalent duration.
- Monthly payments are reduced as there is only insurance and interest to worry about.
- This also benefits the property tax.
- Finally, in the event of death, the loan will be settled with the insurance policy and the remainder of the funds will be distributed to the beneficiaries.
National Bank of Abu Dhabi also has a mortgage range, see how they compare with this recent review.
Fixed Rate Mortgage
With this loan type, customers decide ahead of time that they would prefer a fixed rate of interest. This option is beneficial to those who wish to benefit from current low interest rates.
- Customers know exactly what their monthly installments are and can budget more effectively.
- This allows customers the peace of mind that they don’t have to encounter the unexpected.
- Furthermore, this loan is a little more flexible as it allows the increase, decrease, or postponement of payments according to their income.
- Also, customers can opt for stepped payments to adjust their monthly installments in times of financial difficulty.
- Finally, customers are required to take out insurance to cover the loan in the event of death or disability.
Mixed Rate Mortgage
This option provides customers with a more flexible approach to their mortgage finance as there is a fixed and flexible rate combination. Furthermore, the fixed rate term ranges from 3 to 7 years.
- Customers can use this loan type to finance their primary residence, holiday home, or rental investment.
- This loan type protects customers from interest rate hikes during their fixed rate period.
- Furthermore, customers can also move for free to a fixed rate.
- Also, the mortgage structure allows customers to make use of a stepped installment option in the event that they require a flexible payment option.
- Customers have the option to increase, decrease, or postpone their refunds at no extra charge.
- Finally, an insurance policy covers the loan amount in the event of death or total disability. Customers also have access to insurance options that cover retrenchment or rental income loss.
This option is ideal for those who wish to purchase a new property, but are still in the process of selling their existing one. Furthermore, it acts as a bridging finance, which affords customers a bit of extra time.
- Customers will receive a partial advance of the proceeds from the sale of their existing property.
- The loan amounts can go up to 90% of the sale price of their current property.
- Customers can then repay the loan on the sale of their current property.
- Finally, customers can choose to pay the interest monthly or when they settle their principal debt.
What We Like About Societe Generale Mortgages
This is a clear set of loan options that help customers make the right decision in terms of their personal situation. There isn’t just a singular option that strives to be the coverall of all the mortgage options, which makes it more accessible to a greater variety of customers. This sets the product range a little ahead in the race for the perfect mortgage range.
We are also impressed by the type of options they present to their customers. It offers some of the more generic choices but then turns things around a little with the relay credit option. This is a good sign as it means that they are aware of different home purchasing dilemmas that customers may face.
Find out whether Royal Bank of Scotland's mortgage range had more to offer.
What We Don’t Like About Societe Generale Mortgages
Although the bank provides a pretty impressive range, there are a few things that need to be addressed before it’s absolutely perfect. The first is the ability to navigate the site and this site needs a bit of a revamp. Customers may find it difficult to find the various products on offer. As it is, we could only find 4 different product types for individuals, which cannot be a true representation of what the bank has to offer.
Another thing that niggles a little is that it’s quite difficult to locate pricing on the mortgages. It also doesn’t really state what interest rate options clients can expect. This causes a bit of concern where transparency is concerned, which is quite an important factor when rating the product options.
Critical Reviews Rating Societe Generale Mortgages – 8 of 10
It’s disappointing when you come across a range that offers stellar options to clients. Then, only to find a few things that bring the rating down. In this case, we have to take a strong view where the navigation of the site is concerned. This is because websites only have a few seconds to capture potential clients. In this case, customers will need to dig a little to find what they’re looking for.
Finally, the other point we’ve had to drop was the lack of information on the pricing. This may be available on the website. But, it’s difficult to find which means we can’t include it in our rating. We would’ve loved to grant this a perfect score. However, without those things in place the bank will have to do with an 8 of 10.
Compare this review to that of National Australia Bank's mortgages.