In the past, taking out a mortgage seemed like a piece of cake. Borrowing more than the value of your home was anything but an exception. But times are changing. The rules have been tightened and currently you can borrow a maximum of 104% of the value of your house.
And this will decrease to 100% in 2018. And then perhaps to 90%. Are you buying a makeover? Then there is a good chance that you will not have enough with your mortgage. Own money is a good option. But there are also alternatives. Responsible options that give you more financial room.
A mortgage and loan
“Is that possible, taking out a loan in addition to my mortgage? ”We often see this question in the office. The answer: yes! For a loan you are not completely dependent on the value of your home, but we look at your personal situation.
Factors such as your income, living, working and living situation determine whether and how much you can borrow. It is often possible to take out a loan in addition to your mortgage. For example, to finance the buyer costs or a renovation.
Financing renovation in a loan
A loan is a good way to pay for a renovation. The term is shorter and in the case of a personal Loan, the interest is simply deductible. Certainly now that the reduced VAT has expired, I see more and more applications for a renovation credit coming in. Moreover, a loan is taken out faster and you can usually also transfer the credit to another provider. To benefit from a lower interest rate or better conditions.
Pay off mortgage with loan
You can also use a loan to pay off your mortgage. This option is less known, but it can certainly be interesting. Especially if your mortgage is higher than the value of your home. Thanks for a repayment you are in a lower risk class. And you pay less mortgage interest. Thanks to the historically low interest rate, you can currently borrow money very cheaply to repay your mortgage.
A loan in addition to a mortgage naturally means extra credit. With your interest in mind, we never provide loans to people who can’t actually afford it. But think carefully about it yourself. Choose a loan with a favorable interest rate and good conditions. Only in this way can you borrow money responsibly.