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Loan or mortgage?


Le_Jars

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Er... what's the difference really? We don't have a mortgage on our home but would like to borrow some money to finish it off now. Do we just ask for a loan (any recommendations would be great!) or do we ask for a mortgage on our house? Or is that not a mortgage, cos we already own it?

Confused.
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Dear Le Jars,

first how much do you wish to borrow? It is the most important point to know if you need a loan or a mortgage.

A personnal loan could be done up to 21 500 €(law scrivener 1) on maximum 5, 6 or 7 years(subject to banks,because it was normally 5 but now could be longer).If you ask for a "pret personnel non affecte" you could use the money for whatever you want, without proving anything with bills, etc...A "pret personnel affecte" needs to provide bills (computer, car,...).

The very good point is after 7 days(cooling off period) you could get the money without meeting any notaire and without any guarantee(hypothèque or privilège de preteur de deniers;PPD) against your house and you could repay it whenever you want without penalties.So if you want a small amount and if it's not a problem to pay it on a short term, that's the best way.Rate are a bit higher than mortgage but you would save a lot of money with the others advantages.

A mortgage is set up for purchasing a land or a house, building it or doing works.It is sometimes possible to add estate agent fees and mortgage broker fees.

The duration could be in some banks(few) up to 30 years, there's no maximum of amount.When you get the definitive offer, you have 11 days cooling off period, and if required you meet your notary(it could be avoid in some special case)to set up the "hypotheque or PPD" .

Then if you have set up a mortgage for works, you need to provide bills to your bank which will or pay you on your account or directly pays the builder.No money will be paid to you without bills, everything needs to be proved.

I hope you are a bit less lost.Regards.

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