Refinancing with mortgage security often means combining your existing unsecured loans into a new mortgage. This gives you a lower interest rate and a longer payment period. In other words, the unsecured loan will cost you less, and in addition, the monthly costs will be lower because they will not be repaid as quickly.
For some, this is the solution to avoid debt collection and payment defaults.
If you own a home and have unsecured debt that you are struggling to pay, refinancing with collateral in your home may be the solution for you. Many of our customers already have debt collection, one or more payment remarks, complicated finances or have been refused refinancing by their regular bank. This is not an obstacle for us.
If you do not own a home, a real bailee may be the solution. In this case, someone else, usually a family member, must pledge their home as security for your loan. We then take a mortgage on your guarantor's home, but you pay the interest and repayments.
It's important to remember that we can't remove some of your debt, but we can make it more manageable. We do this by baking your debt into a new mortgage, extending the payment period of your original debt, which is paid off over 25 years. This, together with an often lower interest rate, means that your monthly costs are lower
Our goal is for you to be able to move your loan back to a "regular" bank with a lower mortgage rate once you have regained control of your finances. It varies how long this will take. Some people are with us for two weeks, while others stay with us for a few years. Dhe most important thing is to clear up debt collection and payment remarks, and it may also be worthwhile to show a new bank that you have managed to maintain control over time.
You are therefore not meant to have a mortgage with an interest rate of around 8% forever, but for a period of time so that you can keep up with your bills. Once you have gained control of your finances, you are free to apply for financing from a new bank.
The interest rate on loans is determined based on the applicant's financial situation.
Example. Refinancing with a mortgage from 8.00% nominal interest rate. Effective interest rate is 8.62% for an annuity loan of 2,000,000, repaid over 25 years. Establishment fee from 2-4% of the loan amount, term fee 75,- per month. Total of 4,693.397,-.
