The 110% mortgage is a financing solution offered by banks to loan applicants who have no personal contribution to make to the file. Here is all you need to know.
We are talking about a 110% mortgage to designate a credit whose amount will be that of the real estate property but to which we add an amount to cover the various costs related to the implementation of the credit: fees, guarantee and fees of notary. The bank will therefore define this amount by calculating 10% of the price of the property. Thus, if the price of a property is 200,000 euros, the bank will offer a mortgage for 220,000 euros.
A 110% mortgage loan is naturally more complex to install than for a conventional loan, the bank will be more demanding on the guarantees that the borrower can provide because in the absence of a contribution, it must ensure that the funds will be reimbursed, especially since the sum of the loan will be increased to cover the missing contribution. Several documents will be requested in the loan file.
The main advantage of this financing is that it allows a borrower to gain access to the property without having to make a personal contribution, so it can enable thousands of potential buyers to realize their project of accession to the property. Note that not all borrowers have the ability to place money or use it in a real estate purchase, it does not mean a brake on a real estate acquisition. This is often the case for rental investors, who do not have a contribution.
The loan covers all the costs related to the purchase of real estate, so it can also be real estate agency fees, fees or notary fees, which are essential to authenticate the property. acquisition through an act. The bank will make sure to propose a duration and a monthly amount adapted to the reimbursement capacities of the applicant.
There are several possible solutions to get your loan home without input, the first is necessarily to address his banker but all banks do not have the same commercial policy and this assembly requires to have financial advisors d ‘experience. The other solution is to use a comparator mortgage online, it already allows to obtain a financing estimate but also to know the rates offered at this time.
The comparator solicits several banks and brokers, so it allows to compare offers of home loans and negotiate the best proposal given its real estate project and its situation. The advantage of this type of service is the absence of commitment and the free entry of the form. Good to know, the borrower insurance can also be compared in the idea of negotiating its tariff.