There are few people who have the financial means to buy a house themselves. In most cases, people go to the bank or a mortgage adviser first to see how much money they can borrow. In addition, some people borrow (a part) from family or others through a private loan.
A mortgage means that the lender (usually the bank) lends you money and that your home is the collateral. Do you fail to pay the amounts owed to the lender? Then the lender can sell your house at anauction . With the proceeds of this auction, the mortgage debt can then be covered. Since a mortgage lender has more certainty, mortgage loans cost less than regular loans.
Other than a mortgage, you can borrow money from - for example - a family member. Think carefully about the advantages and disadvantages for both parties ahead of time. In addition, it is very important that the agreements are properly laid down in a loan agreement. This agreement establishes when your loan must be repaid and what the amount of the interest is. We can draw this agreement up for you, but you can also contact us for advice. We can - for example - indicate the requirements a loan must meet in order for it to be tax-deductible.
Among other things, we can provide advice on and guidance with
- drafting a mortgage deed. Whether it is a mortgage to purchase a home, refinancing an existing mortgage or an additional (second) mortgage;
- a loan agreement needs to be drawn up.
Examples of recent questions sent to our (junior) solicitors: I would like to borrow an additional amount from the bank/building society. Do I have to have a new mortgage deed drawn up?
- My mortgage consultant also arranged a life insurance for me. Who gets the payout of that insurance?
- What happens if I become unemployed and can no longer pay for the mortgage?
- Do I have to do anything if I have completely paid off the mortgage?