To many, this term may sound like a dish of Argentine cuisine, but it is about the way some financiers call or called in the past, those mortgages that are hired to obtain liquidity, delivering as collateral a home free of charge or with a mortgage burden much lower than the market value of the home.
In order to be profitable, the amount should be at least € 50,000. As we have said, it is about mortgaging or substantially increasing the mortgage on a home to get a high amount of money, to obtain more financing and generally a lower interest rate than if we opt for a personal loan.
It is very important to keep in mind that in order for this option to be profitably financial, the amount of the new mortgage should be at least 50,000 euros , since due to the inherent expenses involved in setting up a new mortgage (notary, taxes, etc.). ), a personal loan would come more to account because, although the interest rate in principle is higher, its constitution expenses are much lower-CitrusNorth.
Very high-interest rates
4 or 5 years ago, when the mortgage award reached record highs, this formula was used by many families to buy a high-end car, make reforms in their home or second home, make a dream trip, aesthetic operations or even several of these things at once. But nowadays, given the very important credit restriction that exists in the market, these types of operations have very high-interest rates and are not so attractive for families.
At present, they have a very high interest and are not so attractive for families. Nor are there many financial entities that carry them out, it is difficult for an entity not specialized in mortgages to consider these types of operations today. With this panorama, the current reality makes that these operations are carried out by families that, due to the crisis, have found themselves unable to assume the payment of their debts at a given time, and in this way, they appear in delinquent lists.
This is a stigmatization at the financial level, so you can only get credit by mortgaging your home and with a maximum financing of 50% of the value of it, and also at extremely high-interest rates (maybe around 10%).
One very important thing to keep in mind is that this type of operation, given the limited willingness of the financial institutions regulated by the Bank of Spain to finance them, is a market where private capital companies are operating, that is, not regulated by the Bank of Spain. This can produce some uncertainty for people in this situation. For this reason, it is very important to go to an intermediary specializing in mortgages, who knows the market well and advises on the best option in each case.
Registered intermediaries loan
Regarding intermediaries, it is very important to be sure that they comply with the Law that regulates them and for that, they must be registered in the State Registry. So if you go to an intermediary specializing in mortgages demand that they show their registration voucher in the official Registry.
Do not forget that in the worst moments we can always resort to this type of mortgage loans to solve a difficult financial situation, we will not resort to the mortgage on the stone to buy a car, because it may end up being expensive, but for extreme situations that you need more complex solutions, but always well advised .