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Mortgage of a second home?

When we reach a certain economic level, many Spaniards are tricked into buying a second home, a very important monetary decision that today we want to analyze in Good lender’s blog.

The first thing, and as we always say

The first thing, and as we always say

Is to analyze if we can deal with the purchase of a second residence with its corresponding mortgage that, after the crisis, its conditions have changed radically. And it is convenient to know that it is not the same to request the mortgage of a first home than of a second residence since in this second case more guarantees are required.

One of the reasons why financial institutions act like this is because these properties are more difficult to sell because of their location on the beach or mountain than a property that is in a city. For this, the client is required a solvent economic situation, stable work and guarantees in the event of non-payments.

When a family has a difficult economic situation

When a family has a difficult economic situation

In addition, as we well know, when a family has a difficult economic situation, the first thing that stops paying is the second home that uses only certain times a year and is considered an unnecessary asset. The result of all these factors that we are describing are more expensive conditions in the second mortgage than those of a first home considered a commodity of first necessity.

Therefore, before thinking about buying a home for leisure and enjoyment on vacation, we have to know that the mortgage conditions will be worse, more expensive and more difficult to be granted. The applied interest rate is higher and the term to pay off the debt is lower with the corresponding guarantees and guarantees required.

Is it beneficial to apply for a second home mortgage?

Is it beneficial to apply for a second home mortgage?

In this way, is it beneficial to apply for a second home mortgage? Our experts only recommend doing so in cases where the client’s income and expense capacity is strictly analyzed and that, in fact, has a solvency of more than 80% so do not incur defaults, debts or even evictions.

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