Find out how simple it is to realize your dream of financing the purchase of a property to stay during summer or winter holidays. Do you want to invest by buying …
Find out how simple it is to realize your dream of financing the purchase of a property to stay during summer or winter holidays.
Do you want to invest by buying a vacation home?
After all, investing in bricks allows each saver to “protect” their savings of a lifetime and turn on a mortgage is the “smart” and simple solution to meet their credit needs.
In this guide we see all the most useful considerations for lighting up a useful loan to finance the purchase of a holiday home with Prospero.
Mortgage to buy a holiday home: useful tips
If you do not have the necessary liquidity to conclude a sale of a holiday property, the ideal solution is to take out a loan by contacting a credit advisor.
Anyone ( natural or legal person ) can apply for a loan, provided that he can prove that he is able to repay the sum borrowed over time and to honor the obligation assumed.
The subject lender grants an amount based on the value of the property to be purchased, which usually does not exceed l ‘80% of the one established by an appraisal conducted by a professional appraiser impartial.
In certain cases, it is possible to take out mortgages that exceed 80% of the value of the property, against the request for greater guarantees.
For this reason, it is important to carefully evaluate your income, determine your monthly availability and your creditworthiness before applying for a mortgage.
The installment must not exceed 1/3 of one’s disposable income and must not create financial imbalances such as to affect the family budget.
Eye on the mortgage interest rate
In the process of evaluating a mortgage to finance the purchase of a vacation home, it is very important to understand what interest rate applies to the case of the moment.
- Fixed rate , interest rate that remains constant for the entire duration of the loan. The main disadvantage is that of not being able to benefit from any reductions in market rates.
- Variable rate, interest rate linked to the fluctuation of a reference financial index, generally the Euribor. Based on the performance of the financial market, the amount of the mortgage payment can vary: downwards when the Euribor index falls and upwards when it rises. People who want to benefit economically from market dynamics are advised.
- Double rate (divided into two parts – fixed and variable rate). This option is recommended for those who prefer an intermediate solution between the fixed rate and the variable rate, coming to balance the advantages and disadvantages of each.
- Mixed rate : possibility of switching from a fixed rate to a variable rate under certain conditions indicated in the contract or at certain deadlines.
In addition to choosing the interest rate, it is important to ask your Credit Advisor for all the information documents necessary to read the contractual and economic conditions carefully.
It is useful for this to request the Sheet containing the General Information in which each intermediary illustrates the characteristics of the loans.