Because of the economic crisis, or more generally to cope with the daily situations, many citizens decide to turn on more funding, and then find themselves unable to repay what has been borrowed: to the rescue of these payers who are in difficult and probable insolvency, a financial instrument has been introduced over the last few years called mortgage debt consolidation, created to resolve an over-indebted situation, where there is an imbalance between the burdensome obligations assumed and the current liquidity situation. Let’s see in detail how the debt consolidation mortgage works and what it entails for those who use it.
There are three different types of debt consolidation debit, and which concern:
- Mortgage consolidation mortgages and loans
- Mortgage consolidation of loans only
- Debt consolidation loan with additional liquidity
The condition for accessing these types of mortgage, subject to certain exceptions, is not to be bad payers, and has the advantage of paying off debts in advance to the debtor by reducing all loans to a single monthly payment with a lower amount from pay every month.
The debt consolidation loan has an installment lower than the sum of all the previous installments because the interest rates are lower and therefore cheaper, and has a longer duration compared to a personal loan, which can be up to 30 years: the amortization rate it is therefore lower also for this extension in a much longer time span.
There is another peculiar feature of the debt consolidation loan, ie that in certain circumstances, and certain conditions of guarantee, it is possible to obtain an additional liquidity that can even reach 50 thousand euro. The guarantee requested in this specific case is in any case a property of a value equal to or higher than the total amount requested, on which a mortgage is not already liable.
Who can apply for the mortgage
We have so far described the features and various loan debt consolidation solutions, it mentions now that not everyone can get this loan, and that the audience of beneficiaries must present very specific guarantees of the bank protection. First of all, the debtor must own a first home, the main house in which he / she lives, while the property of a second house, a holiday home or a land is not considered for financing approval: this is because the loans provided on the mortgage of a first house, up to 80 per cent of the value of the building can be reached, while on a second home it does not exceed 60, and you risk not having the amount sufficient to pay off the debts in progress.
The second fundamental aspect we have already mentioned above, ie the debtor must be punctual in payments of installments incurred without being registered in the register of bad payers: there are alternative solutions for them, but tend to be bad payers makes it almost impossible to obtain financing requested.
Then there are non-decisive factors in absolute terms, but the banks prefer subjects who have a permanent employment contract, a job for at least four months and an age between 18 and 86 years.
The final advice, if you decide to apply for a debt consolidation loan, is to opt for a consultancy from an industry professional, comparing all the offers on the market before embarking on this funding path.