The mortgage loan or mortgage loan is a bank loan secured by one or more property (s) of which the borrower is the owner.
It can be set up for the purchase of a new property as an investment in the old ( primary , secondary or rental residence and in several forms: offices, house, apartment, residential building or commercial walls ) .
The property must belong in the borrower’s own name, or belong to an SCI (to the IS or not, if this is the borrower).
The solidarity and mortgage guarantee of a SCI is not accepted: the SCI is not intended to be a surety, even simply a mortgage for personal projects of third parties (even the associates of the said SCI)
The mortgage ensures the bank to recover the entire loan amount in case of default of the borrower. The bank will then seize and sell the property to repay the loan initially incurred by the owner.
Who can benefit from a mortgage?
This is a solution that is often put in place when the borrower is in financial difficulty. We also find it when a client holding an inheritance essentially real estate wants to recover liquidities without forselling his / her biens.She is open to the greatest number:
- Trader or craftsman
You must have declared income in France and be a French tax resident. The borrower’s income must be used to repay the credit, taking into account other ongoing expenses.
What is the amount and duration of a mortgage?
The amount of a mortgage loan is determined by the appraisal of the value of the real estate assets. It is between 50 and 70% of the value of the property , so this amount is restricted
A maximum duration understood by the Banks between 12 and 20 years for a depreciable credit. It is adjusted to the income of the borrower. Thus, the debt ratio is adapted to its repayment capacity but the end of the credit must end before the borrower’s 90 years.
Mortgage credit is a conventional credit, so it is fixed rate. It offers the advantage of being refundable in advance.