When you apply for a restart loan, we must first check whether you have "room" for more debt in your home. In other words, how much debt you have in your home in relation to the value of your home. We also look at how much debt you and your partner/spouse have together. Once we have looked at your application, we will contact you to find out more about your situation and, if necessary, ask for more documentation, such as e-tariffs.
It is an absolute requirement from our side that the solution we present to you should put you in a better situation than you were in before. If we cannot find such a solution, we cannot offer you a loan.
If we find a solution that you accept, we start the job by collecting information about all your debts from credit and debt collection companies. That way, we try to avoid overlooking any claims. We then pay your creditors so that they can delete any payment remarks, collection claims or attachments they have against you. We incorporate your new debt with us into your mortgage, so you only have one invoice to deal with.
Our aim is for you to be able to transfer your loan to an ordinary bank once you have got your finances under control. Therefore, you are not meant to have a higher interest rate on your mortgage forever. When you are ready to switch banks, we are ready to help you. You have no lock-in period on your loan with us, and you can rest assured that you don't have to pay anything extra to switch banks at any time.
For you, this means a fresh financial start. You get rid of all outstanding claims with your creditors and only have to deal with one invoice. For some, this also means the end of payroll deductions or forced sale of a home.
Once you've got your finances in order, it's time to change your spending and habits so that you're not tempted to take on more unsecured debt.
By taking out a loan that pays off your creditors, you get rid of claims that have gone to debt collection, payment remarks and expenses that have been levied on you. When you then incorporate this loan into your mortgage, you extend the payment period on your debt and most people also get a lower interest rate on their debt. We don't take away any of your debt, but we make it more manageable by extending the payment period and lowering the interest rate on your unsecured debt. That way, you can get your head above water and apply for "normal" financing when you're ready for it.
By applying for "normal" financing, we mean refinancing the mortgage you have with us back to a regular bank, such as your local bank, where you are likely to get an even lower interest rate on your mortgage.
The sooner you start clearing your finances, the easier it is for a bank to help you. Defaulted debt only becomes more and more expensive because the creditor adds extra fees and interest. In addition, banks must comply with the Lending Ordinance.
The lending regulations, which apply to all banks in Norway, stipulate, among other things, that a home cannot be mortgaged more than 85% (loan-to-value ratio) and that people cannot borrow more than 5 times their own income (debt-to-income ratio). We must also ensure that your finances are in the black once we have deducted all borrowing and living expenses (liquidity).
Because of this, it can be difficult to help you if the cost of your debt has grown so large that you are in "breach" of one or more of the points in the Lending Regulations.
Feel free to contact us if you have any questions about what this will look like for you.
Restart loans help people who have accumulated debt that they are no longer able to service for various reasons. They usually have debt collection, payment remarks, wage garnishments or are on the verge of a forced sale of their home.
In order for us to help you, you must be able to provide your own home as security. If you do not own a home, you must get help from someone else. The most common solution is for a family member to pledge their home as collateral for your loan.
