Since the beginning of this year, stricter rules have made it possible for only creditworthy clients to obtain a consumer loan for a mortgage.
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Obtaining a mortgage or housing loan for the full value of real estate is increasingly difficult, but not impossible. This is due to the rapid pace of household indebtedness, but also the regulation, which slowly tightens the rules for lending.
Last year, they also tightened the provision of mortgages, and since the beginning of this year there has also been a difficulty in providing consumer loans. Lender must require clients to make a net reserve net of their subsistence minimum. It has been 15% since January and will rise to 20% from July this year. The costs of repayment of old loans will also be deducted from income.
Lender investigated whether it is normal and realistic for an average creditworthy client to fund a 70% mortgage with a consumer loan up to 100% of the value of the property.
Lender does not want to say directly that only above-average clients get such a high credit. The provision of mortgage and consumer credit is influenced by several factors, so we cannot clearly say to what amount the client could qualify.
Lender bank indicates that only creditworthy clients will receive a high loan. A client can take a non-purpose loan for a refinancing mortgage if it allows it to receive income and has sufficient capacity to repay both loans.
Financial houses have confirmed to us that they still offer 100% mortgages, despite the limitations of the NBS. Credit market experts have confirmed that 100% mortgages are almost a thing of the past, and the number of clients who receive a consumer loan for large sums to replenish their resources to 100% of the value of the property is lower.
Stricter lending conditions since the beginning of the year have clearly made it more difficult to access loans for both housing and consumption.As a result of increased spending when assessing a client’s ability to repay a consumer loan, it is possible that not all clients will be able to qualify for a consumer loan. Especially high consumer loans will be problematic. For example, it is possible to obtain a consumer loan of up to USD 25,000.
How it works in practice
If you know that you need more money than you get through a mortgage or a home loan you can also apply for a consumer loan. The procedure for applying for multiple loans varies from bank to bank.
First apply for a mortgage and, depending on the amount, decide how much you will apply for through a consumer loan. “As the client applying for a mortgage does not know the amount of the loan he / she will be approved for, he / she cannot apply for a consumer loan in advance or at the same time. Only then, when he already knows the approved amount of the mortgage, does he decide on other possibilities of obtaining the necessary funds.
Do not borrow unnecessarily more than necessary for consumption, the interest rates are also two or three times higher than on mortgages . While you get a mortgage today for as little as one percent, interest rates on consumer loans range from 4% higher. You can compare them here .
Consumer loan is then considered by the bank as an individual application with respect to your current financial situation. Your mortgage debt will already be taken into account, so the chances of a high loan will diminish.
At Lender bank, mortgage specialists will prepare a comprehensive offer of all loan products, which you can apply for together with the maximum limits for individual loans. You can apply for a mortgage, a special-purpose loan and a credit card in one application.