Friday, 18 July 2014

Age, a mortgage

The decision to grant a mortgage loan can anticipate various factors. It is outside earned income, previous credit history or credit held, the age of a potential borrower. How it affects the grant funding?

Age has a considerable importance in the case of mortgage loans. Each of the banks has of course a bit different standards, but in most of them, the minimum age of the borrower wanting a mortgage, it is 18-21 years.

The upper limit

Individual banks also differ in terms of the maximum length of this type of credit, and determined the maximum age limit of the borrower. It's not important how old bank customer has on the conclusion of the credit agreement, and how many years will be held at the time of full repayment of the loan. Banks providing loans for 25, 30 or 35 years reserve for that on payment of the last installment of the loan, the borrower can not be older than 70, 75 or 80 years. Finally, then, is the length of the loan depends on who the customers actually have a chance of getting the loan. It's hard to deny the logic of this obostrzeniom because there is no way to imagine the borrower, which regulate the final installment loan is celebrating its hundredth birthday.

The way to reduce

Those slightly older need not completely give up the forms of mortgage lending. For there are three ways of easing restrictions on banks in relation to the maximum age of the borrower. The first of these is the obligation to redeem the life insurance policy and make an assignment for the lending bank. This may result in increase in the upper age limit by up to five years, but will be linked, of course, the additional costs to maintain insurance as required by the bank during the period. Another way is also bringing high own contribution, by what the bank will lend less, and thus will bear less risk associated with lending, and it will be able to be paid off faster. The last of the options affecting the increase in the maximum age of the borrower's mortgage is to find współkredytobiorcy. This situation, however, is divided into two cases. Bank looks at the issue of age leniently, if additional współkredytobiorca will have a high income, ie, a high percentage of the calculated capacity of the borrowers, or will simply be younger, which will guarantee repayment of the loan.

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