Mortgage Personal Loan (Building Warranty): Find out more!

In this guide we will deal with the personal mortgage loan , a type of loan with specific and particular features that differentiate it from other types of personal loans. Let’s find out what a mortgage loan is, what its characteristics are and how to apply for this type of loan.

What is a personal mortgage loan?

The personal mortgage loan is a loan that provides for the signing of a mortgage to guarantee the repayment of the loan.

In principle, all valuable assets can be used for the mortgage, but the most common asset from this point of view is a property , with the property owned as a common asset. However, any type of property, movable or immovable, provided it is of adequate value, may be mortgaged as collateral , including luxury goods such as jewelery, antiques or works of art.

Very often this loan is compared to a mortgage , with which it shares the presence of a mortgage, even if its characteristics make it in effect a type of personal loan.

The characteristics of mortgage loans

What most distinguishes mortgage loans on the house or on other assets is the amount that can be requested as a loan, which can also reach raised figures in the presence of a high value asset.

The duration of the loan is also proportional to the value of the asset given as collateral and to the size of the loan; bear in mind that personal loans with a home as a guarantee (or other valuable assets) usually last longer than average personal loans.

The specific characteristics of personal loans with mortgages vary, however, depending on the subject who provides the loan and may therefore differ significantly. For this reason it is always advised to choose after comparing more similar products. Please note that there are also online mortgage loans, which can be requested without the need to go to the banking and financial offices.

Value and convenience of a mortgage loan on the home

We have previously said that mortgage loans can take on even high values, depending on mortgaged assets. Before choosing a personal mortgage loan, it is advised to carefully evaluate your insolvency risk and make sure that the mortgage asset has a value comparable to the amount you receive as a personal loan.

For the mortgage loan, as for all personal loans, it is always advisable to stipulate an installment lower than your payment options, in order to be able to repay the loan even in the event of a reduction in your income.

How to get a personal loan with a mortgage: the necessary documents

A personal loan with a mortgage does not differ from a standard loan as regards the documentation to be submitted. As a rule, the applicant’s identification documents , a document attesting the income (such as a pay slip, the pension slip or a single form) and a document certifying the actual residence are in fact required.

The only exception for this type of personal loan is the need to provide the bank or the financial company with documentation certifying possession of the asset offered as collateral. The property of the property must be 100%; otherwise it is also necessary that the mortgage authorization also be presented by the person or persons who hold the remaining shares of the asset in question.

Finally, it should be noted that the assessment of the practice for a personal mortgage loan could take longer than those required for a common loan, especially as a function of the time of evaluation of the asset proposed by the applicant as a mortgage.


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