In this article we will explain how the mortgage loan works, a solution that is part of personal loans, while presenting a peculiar characteristic, namely the need to put a mortgage on an asset or property, in order to make the request. It can fall into three categories: life loan, home loan and mutual liquidity : we see precisely what they consist of.
Let’s take a small step back: personal loans are those loans that leave full freedom to the client in the investment of the money obtained, unlike finalized loans that, on the contrary, are strictly linked to the purchase of a particular asset or property, as for example the financial for the purchase of cars or appliances, or the classic home loan.
Obtaining a personal loan is much more difficult than finalized loans, because, in the absence of certainty about how the client will use the sum received, the banks run the risk that the latter wastes money and does not pay back what was agreed, and there would be no good to be redeemed in the event of insolvency. For this reason, usually personal loans are required to obtain more stringent guarantees, such as a permanent contract or the presence of a relative who acts as guarantor or guarantor: a solution, to access funding more easily, is to opt for mortgage loan, which involves several benefits, but also some disadvantage.
What is a mortgage loan?
As we said, the mortgage loan is a package that requires the mortgage of a property or a property to forward the request: it is therefore necessary to present a written guarantee, and the bank, in case of insolvency, can use the asset in question to challenge the customer, making it a sort of “reserve capital”.
The mortgage loan, for all other aspects, such as the amortization schedule, the monthly installments and the interest rate, is not so different from the other packages, although in most cases it allows users to receive larger amounts, which they can also exceed 50,000 euros, depending on the value of the mortgaged property.
Furthermore, since there is a strong and tangible guarantee, the conditions are generally more advantageous than those of ordinary personal loans: the interest rate is slightly lower and the duration of the installment plan is more reasonable, and hardly exceeds 20 or 25 years.
Mortgage loan or home loan?
The mortgage loan, as we have seen, recalls the classic home loan, used by thousands of citizens to buy the first home, which involves the loss of ownership of the building in case of insolvency: what is the difference between the two packages? What distinguishes the mortgage loan from home loans is that, while the mortgage does not exist for the latter, since the property becomes the property of the customer only when the payment ends, the former can only be used to buy goods that do not they act as a first home.
So, who already owns a house and wants to buy a second one, can find this solution very convenient, since it would allow him to easily receive sums of medium or large amounts.
Mortgage loan: what are the requirements?
To obtain a mortgage loan, as we have seen, it is first of all necessary to be already owners of an asset (in most cases it is a house or a land), and be able to produce all the documentation necessary to certify ownership. Recall, however, that the owner does not lose possession of the property during the period of the amortization plan, but this only happens in case of insolvency, as we will see later, when we analyze the main risks of these packages.
Therefore, to access the mortgage loan, the following documents must be presented to the bank:
- property document of the property ;
- valid identity document and tax code ;
- work contract, paycheck or tax return.
According to the law currently in force, it is also possible to affix the mortgage to the dwelling in which you reside, provided it is owned by the client, or to assets of other categories, such as valuables, state income or inheritance. certified.
Mortgage loan: three types
As mentioned earlier, the mortgage loan includes three categories:
- the lifetime loan → dedicated to customers over 65 years of age, allows you to receive a sum to be repaid in a single solution, without monthly installments, and involves the mortgage of a property with a minimum value of 100,000 euro, provided that it is residence established: if the person does not return the agreed amount, the property passes the property to the bank, as well as in the event of death, even if a redemption by the heirs is provided, provided that they fully repay the money obtained;
- the mortgage home → used by citizens who want to buy a building: if it is the first house, the possession becomes effective only after the repayment of the domma, while in the case of other properties, you will need to mortgage your home as a guarantee for the bank;
- mutual liquidity → a solution chosen by many users who do not possess the common requirements to access personal loans, above all from a business point of view, but are owners of a property, which can mortgage to use it as a guarantee.
In all three cases, however, the success of the operation and the amount payable depend on the value of the property in question: the greater the prestige of the home, the greater the chances of obtaining a high amount.
Mortgage loan: what risks does it involve?
We conclude this guide with a question that, probably, many of you will be asking yourself: what risks does the mortgage loan involve? The major danger, as is clear, concerns the loss of the property, so, before signing the contract, you need to be sure that you can repay the amount obtained, as the non-repayment of the amount involves the appropriation by the bank.
How many installments is it enough to jump to lose ownership of the house? Although the characteristics of the package are different depending on the Banking Institute you are relying on, in most cases you only need to skip two or three payments so that the property decay definitively.
Therefore, despite the mortgage loan is often the only solution for the unemployed and for those who have been classified as bad payers, we must not overlook the danger of having to say goodbye to their home: we suggest therefore to inform you well about the alternatives, whereas, nowadays, banks grant fast loans even to those who do not have a paycheck or do not have a permanent contract, although the payable figures are much lower and the conditions are frequently less advantageous.