Premier Cru launches wine product

Branded ‘Home Cellars’, the product uses fine wine as the repayment vehicle alongside most interest only mortgages.

Premier Cru believes running an investment plan alongside an interest only mortgage could reduce costs in the long term and that fine wine acts as an ideal investment vehicle for mortgage repayment.

Key points include:

• Potential to reduce costs compared to Capital Repayment schemes
• Investment is tax free and not assigned to the mortgage lender
• Growth in fine wine generally exceeds standard investments
• Long history of stability in the fine wine investment market
• Investment is flexible allowing the holder to adjust monthly payments to suit financial needs
• Life assurance is a separate term insurance, meaning holders do not lose cover if the wine investment is temporarily stopped.

Fine wines are an established form of alternative investment. Key attractions to investors include the long history of stability in the market, the high growth of the wines and their tax free status. As with all investments, the longer the investment, the greater the potential returns, making fine wine ideal as a form of mortgage repayment.

Stacey-Lea Golding, investments director at Premier Cru, commented: “We are delighted to be able to offer this product to homebuyers. Mortgage repayments can prove to be a struggle and we are keen to provide an alternative solution to traditional, rigid repayment schemes. We believe that this will save mortgage holders money in the long-term, and provides a valuable new addition to the mortgage market.”