Did you find the perfect house but is labelled as a holiday property? Never mind. You can also use a mortgage to buy cottages that are designed for recreation. However, what matters and under what conditions can finance loan purchase recreational property?
You fell in love with the charming cottage that is beyond your financial possibilities? Or have you found a dream house that is unfortunately intended for recreation? In neither case you do not have to be sad - there is a possibility of mortgage financing. Get inspired in today's article - and you may find that your dreams are at your fingertips. Or rather within the reach of the mortgage - but real.
The condition for obtaining a mortgage for housing is a financial reserve of at least 10% of the purchase price of the property. When financing a holiday home, however, the amount can vary - and suddenly it can rise up to 30%. The percentage of the purchase price determines the investment that the buyer must make from his own pocket. It is ideal to inquire at the bank or your broker - in exceptional cases the same conditions apply as when purchasing a property for permanent housing.
As part of a mortgage you request a bank, it is necessary to guarantee the property. In addition to collateral of the purchased cottage can also be guaranteed by own apartment or house in private ownership. Banks like this option - it is standard collateral. However, not everyone has a suitable property at their disposal for which there is no other pledge - and so it is rather the pledge of the holiday property. In this case, however, the object must be suitable for the bank - it simply must meet certain parameters.
Without conditions it would not work
The purchased house should of course have a descriptive or registration number. These are just recreational buildings, which tend to have a registration number. In addition, the construction should stand on the land owned by the owner, otherwise the pledge of such a property would be inappropriate. This also applies to the need for trouble-free access to the object. If the trip to your dream cottage is through foreign roads or land, you will need to obtain at least the owner's consent or easement to ensure access to the collateral.
Individual banks may offer slightly different mortgages - and thus also the conditions for obtaining them. That is why it is good to inquire in several places at the same time or to arrange a detailed meeting with a broker or financial advisor. Prepare for it. You should know the answers to questions such as the habitability of the house all year round, cottage equipment, the presence of a bathroom and kitchen, the size of the building and of course the available utility network. Is that clear? So hurray for dreams - because it's never too late to be a proud vacationer or home owner in a secluded forest. And which idea is yours?
