If you are thinking about applying for a mortgage loan, the different possibilities you have and one of the options you can choose to make this mortgage more flexible will have already reached your ears. In the case of some mortgage loans offered by banks there are alternatives such as lack. And what is the lack in a mortgage ? What is it for? In this blog post of Big brothers we explain it in detail.
What is a mortgage with lack and what is it for?
In theory, this gap is intended for people who are going through a difficult economic situation or for those who need more liquidity for a while. The deficiency in the mortgage is not more than the partial or total postponement of our monthly quota during a determined term . In the partial lack, the borrower does not have to pay the corresponding fee for a while but the interests. As for the total lack, nothing should be paid (neither fees nor interest). Obviously, during that time during which the mortgage is in need, the mortgage loan will not be amortizing.
When the bank is talking about a lack, it refers, in purely financial terms, not to amortize the capital during a period of time, which is usually a few years. By not amortizing capital, the outstanding debt will not be reduced. That is why the fees that you will have to pay will be higher. That must be taken into account before launching to request a deficiency in a mortgage.
Who is interested in this type of mortgage?
That will depend on the situation of each person . What you have to be clear about is what it is based on. Let’s put a practical example for it. We acquired a mortgage of 200,000 euros for 35 years. The interest is 3%. The mortgage with lack that we have is total already two years. That is, during the first two years we would not have to pay interest or any fee.
However, being two years without paying it is necessary to take into account that during those 33 years the monthly payment becomes much higher than if we pay it in 35 years. In a partial mortgage deficiency, we would be paying interest so, after spending those two years of grace, we would no longer have to add the interest already paid but the quotas that we have not paid.
Beware of the dangers!
What we have just told you must be taken into account and is one of the great disadvantages of a mortgage deficiency . Let’s list what disadvantages this option has:
- Increase the total cost of the mortgage : not only must we weigh the advantages that it brings us in the short term, since in the long term they can suppose a burden for which we can not be prepared. That is why, in this sense, each one must analyze whether it suits him or not. In this case, opting for a deficiency will be much more interesting for people who, for whatever reason, should not pay at the beginning and pay a higher amount later. For example, you can compensate if in the next months you have to face other debts that you will not have when the grace period ends.
- The term is extended : the mortgage lengthens, with the slab that entails for those who have to face it for so many years. If your idea is to pay the mortgage as soon as possible, you should discard this option.
- If the mortgage is for many years, you will have to pay more . A mortgage loan with a 5-year grace period is not the same as a 30-year loan. The longer the term of the mortgage is, the interest is increased and, therefore, we will have to pay much more when the term is longer.
- Lack of economic forecast . If you are one of those who settle and have trouble planning your accounts based on a marked budget, the increase in fees in the future can lead to a serious problem.
What alternatives do I have to cope better with my mortgage?
If you are thinking of applying for a mortgage deficiency due to the economic difficulties you are experiencing, you should know that this is not your only option to cope with those first months or years. In addition, you should also know that if our bank contemplates this option of mortgage deficiency, it will take into account the economic situation of the holders of the loan at the time of granting that possibility.
However, if you want to get rid of your mortgage as soon as possible and if your situation is not all serious and you think that you will only need a punctual aid to pay the first installments of the mortgage, you always have the option of requesting an urgent loan to palliate a bad month in which it costs you to face your debt with the bank. For this you can count on us . Simply entering our web portal, Big brothers, you can request and obtain a loan in 15 minutes. You choose under what conditions you want your loan, the amount and the return period. At Big brothers we do not demand real guarantees of payment, we simply trust people. In this way, all those who do not have a job, a guarantee, have outstanding debts or a bad credit history, all of them can also access their online loan through our company.
We offer you the help you need so that you have liquidity at all times. Apply today for your online loan through Big brothers and you will have the money you need right now!