Friday, 30 May 2014

Mortgages for the retiree?

Contrary to popular belief a person in retirement also has its own needs and dreams. One of them is more and more land for a town with a nice cottage resort . It is true that lack of money may close the way for this type of aspirations, but then there is something like a mortgage - even for retirees .

Banks did not close on people who are no longer active in the labor market. Everything depends on the security for the repayment of the liability. It must be remembered that the standard mortgage loans are issued even for forty years, but under the condition that the primary borrower on repayment obligations will not have more than, say, sixty years. All because of the fact that financial institutions are afraid that after going to retire drops our credit worthiness , and perhaps even completely lose it. "Nothing could be further from the truth" - experts say. "In the end, there is no shortage of people whose monthly benefit of a few, or even several thousand. Additionally, they are very often considerable savings - for example in the form of securities - which can be an additional collateral for a loan for an apartment or a house" - the experts add. It should be noted, however, that in the case of people who are retired , banks require additional insurance when applying for a mortgage . Certainly not an ordinary life policy , because that little insurance company is willing to insure people over sixty-or seventy-year life. You can always comprehensively insured property , and make a statement that in the absence of the possibility to repay the debt (eg due to the death of the main borrower) the bank has the right to take the amount of insurance.
Whether we like it or not, we must admit that people in retirement increasingly also want to invest and multiply your wealth is through the purchase of real estate. Buying an additional flat or house even after the sixty years of age is not such a bad idea. It is a pity that the need for the robust (read: high) pension , as well as strong security. Otherwise we can forget about a dream cottage .

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