Redeem your various loans and finance your projects thanks to a mortgage loan group adapted to your profile. Mortgage credit consolidation explanation by the broker Best Bank. Simulate your credit consolidation online Mortgage credit consolidation is an operation consisting in a borrower having one or more of his outstanding credits redeemed by a lending institution, while guaranteeing this new loan by a mortgage. Owners of real estate and first-time buyers are the categories of people for whom this financing solution is intended.
Explanation of mortgage credit before getting started
Before embarking on such a project, you must absolutely carry out a preliminary study of its different aspects in great detail. To build your file and hope that it is approved by the organizations requested, such as the central credit office at the Capital Lender, it is essential that your financing needs are carefully analyzed. To do this, your financial situation as a borrower must be studied in depth. At this level, the value of your property, your monthly expenses, as well as your income, are among the elements to which special attention should be paid. In this process, the value of your property takes pride of place. It allows you not only to assess your mortgage share but also to assess the feasibility of your project.
How does a mortgage consolidation work?
As mentioned in the introduction, a mortgage buyback solution allows an individual owner of a property to carry out a loan consolidation. This consists of one or more mortgages most often associated with consumer loans. The credits thus grouped using this technique are characterized by generally higher amounts than those of a conventional personal loan, whether it is an installment loan or other consumer credit. It is for this reason that the lender requires real estate for this operation as collateral to guard against the inability of the borrower to repay the funds received. In such a case, the funding agency may obtain reimbursement of the money granted with a portion of the income from the sale of the mortgaged property.
Know the different advantages of a mortgage consolidation
A mortgage buy-back has advantages for both borrowers and financial institutions. For owners who apply for this type of credit, it is a question of benefiting from financing solutions at more attractive interest rates for the realization of their various projects. In addition, the approval criteria are less restrictive in the context of a mortgage loan redemption request. For their part, financial institutions can count on the security that the mortgage represents. In case of difficulty for the borrower to repay, they can recover their due by reselling the mortgaged property and use part of the income from the sale as repayment. This practice is accepted by the Belgian supervisory authority.
Simulation, a step not to be overlooked when buying a mortgage
As with any credit opening, financial institutions carry out a careful analysis of the file submitted by the applicant for a mortgage loan repurchase. This is why it is important to carry out a mortgage consolidation simulation in order to get an idea of your debt capacity. In general, tools available online allow you to do this in record time. Because you need to get a true picture of your financial situation, you need to provide real information. By entering data such as your monthly charges, your income or the value of your property, make sure that they are not incorrect. Do not hesitate to contact a Best Bank expert who can provide you with the assistance you need during this process. He has the necessary expertise to advise you and guide you step by step in your various steps. Simulate your online credit consolidation