If building measures are to be carried out at the house or if a conversion is pending, not infrequently a loan becomes necessary. As an alternative to home mortgage lending, many banks offer a modernization loan. It can be awarded to real estate owners and serves to finance construction or conversion work.
Having your own property provides financial security but can also be costly if urgent work needs to be done. But even if a renovation is pending, perhaps because the children need more space, or if an energy-saving heating is to be installed, it can be expensive. Depending on the size of the construction measures, higher four-digit amounts are needed quickly, and sometimes even money in the five-digit range may be due. These sums are rarely available on the savings account, so a loan must help. With him it is possible to finance this work in monthly installments. It is important, of course, that the amount of the installments are adjusted to the existing income, so that they can be adopted over the long term and without any problems.
These loans are available for refurbishment:
If you compare mortgage lending and modernization loans, you will see several differences. While mortgage lending can be raised with sums of 100,000 euros and more, modernization loans are often limited to amounts of 50,000 – 7 5,000 euros. The duration is different. It can amount to 40 years for mortgage lending. In the case of conversion loans, which are designed on the basis of an installment loan, terms of 6 to 120 months apply. After a maximum of ten years, this loan must therefore be fully repaid. One final difference is the collateralization of the loans. Must borrowers in the mortgage a mortgage into the Land Registry to register, this is not necessary when upgrading credit. He is forgiven completely without collateral. On the other hand, it is uniform that both loans are earmarked. They may therefore only be used for conversion and modernization work. As proof, corresponding invoices must be submitted.
These differences include mortgage lending and remodeling loan:
|Construction Financing||conversion credit|
|loan amounts||100,000 euros and more||50,000 – 75,000 euros|
|maturities||10 – 40 years||6-120 months|
|Usage||Remodeling and modernization||Remodeling and modernization|
If you have opted for a conversion loan, you can take the corresponding loans directly online. But before that, you should do a comparison of the different providers, because as with all other loans, there are often big differences here. With the help of a credit calculator, after entering the desired loan amount, all providers are scanned and checked for their loan interest. The comparison then shows the annual interest rates to be paid, which show the exact cost of the loan. If an offer has met your expectations, you can be forwarded directly from the comparison page to the provider of the conversion financing. As a rule, there is also the application for the loan, which can be filled out immediately.
With this data, the bank computer can then make a first offer and check whether the lending is even possible. In the case of a positive decision, the application can now be sent by post and finally processed by the bank. If all information is complete and correct, the money can be paid out the same day.