To qualify for a Self Cert Buy to Let Mortgages it is necessary to own and to need to borrow. When a bank lends money, it takes a risk. To minimize this risk, bank asks the borrower for guarantees. Evidence of income, deposits, and contributions, insurance are among the most requested guarantees. In order to obtain loan, an owner can therefore put his property as security. Thus, if the borrower were to be unable to repay the monthly instalments of his loan, the bank will seize the property and refund on its sale.
In which case can an owner mortgage his property?
While mortgaging one's property may appear to be a solution to financing problems or a difficult financial situation, it must be well thought out and carefully studied so as not to fall into over-indebtedness.
Indeed, the best reason to mortgage your property is part of an investment approach that will increase the value of your assets: buy a new property or carry out work to improve your home.
How to mortgage your property
The mortgage is an official act that requires the drafting of a notaries act and the registration to a national file: the land registration service. These approaches entail costs. A property tax of 0.715% is also applied as well as expenses of disbursements. You also need to know that a real estate subject to mortgage will be more difficult to sell if the mortgage is not lifted. Indeed, the change of ownership of the property does not put an end to the mortgage.
Since he is able to repay his loan, the owner can at any time lift the mortgage on his property. However fees will be applied to it. When mortgaging one's property , one must keep in mind that the buyer does not own it until the end of the loan repayment. Hypothecating your property is a fairly common practice found in all social strata. It is not necessarily linked to a delicate financial situation. If the mortgage is an effective investment tool, it must however be well thought out in view of the risk of loss of the property.