The mortgage loan , also known under the name of mortgage credit , is a personal financing solution that requires the subscription of a mortgage as collateral on a real estate property, in order to obtain a certain capital. Technically, the type of mortgage loan is included in the category of personal loans to the private sector, and does not present substantial differences regarding the criteria for the payment of capital, the total repayment plan or the calculation of the monthly payment: to constitute differences compared to traditional types of loans it is precisely the request to subscribe a mortgage on the property held, on which the loan has been repaid in the event of insolvency on the part of the debtor.
Let’s try to see in more detail everything you need to know about mortgage loans, the various types, the necessary documentation to be presented and the convenience or not for the applicant.
Types of mortgage loans
Financing companies and lenders propose different solutions that fall under the type of mortgage loan, but which can be summarized in three categories :
- Life loan
- Home mortgage
- Mutual liquidity
At first glance, the mortgage loan is very similar to the traditional home loan, through the provision of a capital after signing the mortgage on the property borrowed, which is usually twice the percentage of the real value of the house: the difference is constituted from the value of the property to be mortgaged . Technicians sent by the creditor make an estimate on the property to establish its effective market value and the corresponding amount for the loan, which must always be proportionate to the salary of the applicant. Generally the maximum transferable sum is one third of the sum received each month.
The three types of mortgage loans present slight differences in repayment characteristics and plans: the home loan can also be granted to bad payers , while the mutual liquidity provides for a maximum amount equal to the value of the property burdened by a mortgage. The latter is suitable for those who want to obtain a loan to open an activity in the absence of guarantees, while the life annuity loan is suitable especially for those over 65 who need a sum to meet urgent and unforeseen expenses. The amortization plans see customizable installments for the home loan, while for the life loan in general, the repayment period varies from 5 to 25 years. Finally, the mutual liquidity allows to obtain up to 75 thousand euros based on the value of the mortgaged property.
The mortgage applicant must be the owner of a real estate , on which the mortgage can be signed as a guarantee for the creditor body, and the debtor remains the owner of the asset except in the event of insolvency, as regulated by articles 208 and following of the Civil Code . The applicant must go to the credit institution bringing with him copies of these documents :
- Certificate of ownership of the real estate
- Work contract
- Valid ID and tax code
Technically, the signing of a mortgage is also possible for other goods of material properties, such as motor vehicles, or future assets deriving from an inheritance, but its most widespread application is linked precisely to the house. In the legal language the mortgage is indeed a
real right of guarantee, established in favor of a creditor, on assets or rights related to real estate or registered furniture owned by the debtor, or a third party that guarantees it, in order to ensure, in the event of insolvency, with forced sale of the same ones the fulfillment of an obligation.
Who should take on a mortgage loan ? The fears and risks associated with this type of operation have been the subject of numerous television broadcasts, not so much for the traditional mortgage, which remains the preferred way to buy a house, where the mortgage is directly subscribed to the building borrowed until the end of payment of the entire value, when the recipient of the loan becomes the owner of the asset.
On the other hand, mortgage loans require a mortgage on a property that is not burdened by a similar loan: those who have an urgent need for cash can obtain up to 50 thousand euros , and if they have lost their jobs and want to open a activity, mutual liquidity can be a risky solution but sometimes necessary to start again.
In any case, the advice is to read the mortgage loan agreement in detail , before signing it, to ascertain the sustainability of the repayment plan and the monthly installments. The foreclosure of the house by the collection company in the event of arrearage is not possible only if it is used for business use, the debtor resides there and is the only house he owns: otherwise Equitalia can act if the credit claimed exceeds 120 thousand euros.