What are the reasons that make people resort to a mortgage loan?
Since 1970, Bougardier has been an expert in mortgage credit. Historically, our offer has been developed around mortgage loan objects that were not the purchase of real estate. This includes contributions to business checking accounts, cash to help children finance their studies, pay tax debts, etc. But, since the Covid-19 crisis, they are increasingly approaching us to finance the purchase of real estate.
Namely ?
In the current environment, we have strong demand from people who already own and want to finance other acquisitions. That wasn’t really the case until now. In fact, since 2019 access to mortgages has hardened, a trend accentuated by the imperatives of the Higher Stability Council (no more than a 35% debt ratio), the current crisis and the rate hike. Faced with the refusal of traditional banks, which in their calculations do not take into account that they are already owners, these people turn to us to advance their file and find a solution for financing their real estate purchases.
What is the proportion of requests that receive a positive response?
On the files that we present to the banks with which we work, we obtain 98% positive feedback. Our experience means we know exactly what the financial institutions we work with expect and want. I would add that we do not take files on first time buyers. As I told you before, our clients are always owners.
At your level, what could be the reasons for a refusal?
If my company rejects a file (before submitting it to banks), the reason is usually income or amount that is too low. I am thinking here of borrowing capacity or outstanding debt, for example, if the person already has several loans to repay.
Finally, what are the fundamental differences between a traditional loan and a mortgage loan?
The interesting thing about the mortgage loan is that there is no need for a down payment. It is the property already owned that comes as collateral. Currently, in the classic credit, you can have two apartments already paid for, however, this will not be taken into account by the bank. She will simply look at the purchase price of the property you want to make and the income you have. This is not our case. The examination of the file takes into account the existence of real estate that will compensate for the lack of cash. On the other hand, with the mortgage loan there is no contribution, no security pledge, no backed life insurance investment, and no obligatory death insurance. In addition, it is possible to pay the capital at the end of the loan (mortgage loan in Fine).
This content was produced with SCRIBEO. The BFMBUSINESS editorial team was not involved in the production of this content.
Source: BFM TV
