What is a mortgage?

The mortgage is a guarantee for the bank that granted you your mortgage. It is in way security which gives him the right to seize the property if the borrower does not respect the conditions of the loan granted. Thehmomortgagebroker.co.uk credit comparator tells you everything you need to know in HMO Mortgages Guide.

The mortgage in a few words

The bank generally asks for a guarantee when it grants you a mortgage in order to be sure of being paid. The mortgage is part of this guarantee, it allows the bank to seize your property if you cannot repay it and then put it up for auction, and thus be reimbursed. It is a guaranteed loan which must be certified by a notary. In general, the mortgage guarantees a mortgage, but it can concern an assigned loan or a personal loan.

How the mortgage works

As said above, the body granting a loan wants to guarantee the funds it lends, and may, in the event of default on repayments, obtain the foreclosure and sale of the mortgaged property.

The borrower can also decide that his mortgage is a reloadable mortgage. Rechargeable mortgage credit is that a mortgage, guaranteed by an initial mortgage, can also guarantee a consumer loan. During the repayment of home loans, the mortgage is reused to secure other loans. A single property therefore serves as collateral for several loans within the limit of the initial amount of the mortgage. It imposes formalities including the intervention of a notary.

It can be used as a guarantee for:

• of consumer loans excluding revolving loans,

• home loans,

• of loans granted to professionals.

The mortgage, except in the case of the reloadable mortgage, lasts as long as the credit. However, it still remains registered with the land registry services for a year after the end of the credit, without however that the duration of the registration may not exceed 50 years. The borrower may however, subject to conditions, have this mortgage raised.

Regarding acquisition costs: In addition to the costs relating to the credit, the borrower will have to bear the acquisition costs. They include taxes, fees, the notary's remuneration and mortgage costs. The notary's remuneration is fixed by a decree.