A loan without a mortgage guarantee will avoid guarantee fees and mortgage fees. The mortgage-free buyout is a good fit for homeowners who wish to borrow to repay all of their current loans without offering a mortgage on their property to the bank.
Why is a mortgage guarantee required?
When you apply for a mortgage from a bank, the bank will ask for a mortgage or a deposit.
The mutual guarantee or bank guarantee is offered by financial institutions to guarantee a mortgage. It is less expensive for the client because it avoids the payment of a land tax. In return, the borrowers must pay to the surety company, as soon as the mortgage is put in place, a contribution to a mutual guarantee fund and a commission. The contribution can be returned at the end of the loan if there has been no outstanding payment. What consequences for unpaid bills? The surety company agrees to pay instead of the debtor. The housing loan is specialized in the guarantee of mortgage since 1975.
A mortgage set up by a notary gives a guarantee to the lending institution. It will be published in the land advertising service. We will talk about mortgage credit or mortgage loan. In case of unpaid bills, the bank may proceed to seize the property and ask for its sale to settle the loan, of course if no amicable solution has been found. No bank makes a seizure with joy, it is a failure of negotiation.
The loan guarantee fees are not always included in the loan application. Some banks require that they be financed by a personal contribution.
A loan without mortgage guarantee to consolidate its loans
When you used our credit pooling simulator, you found that it is possible to redeem credit over 120 months. Over a short period like this, you will not be asked for any mortgage guarantee. In addition, we are proposing fixed rate borrowings. For example, for a credit buy-back of 50,000 USD, it will be pointless to propose a mortgage because the amount is small.
Unsecured mortgage borrowing is simpler and faster to set up. As part of a credit redemption, it will allow you the early repayment of all your loans and especially to obtain a single smaller monthly payment adapted to your budget.