Payment notes can affect a lot in different situations, something that you can read more about in other articles around the site. Here we will concentrate on mortgage loans affected if you have one or more payment notes.
Is it possible to get a mortgage despite a payment note?
The answer to this question depends on one more question and it is which bank you turn to. It is true that the classic big banks usually refuse to lend money to people who have payment notes and there is no difference when it comes to mortgages.
The interesting lending institutions for those who have a note of payment and want to take out a mortgage are often slightly newer players in the market. For they have realized that there are many who have payment remarks but who still have a sufficiently good finances to manage to repay a mortgage.
Mortgages = Loans with collateral
What makes it possible to get approved when applying for a mortgage even if there are active payment notes is that it is a loan that has collateral. This means that the house, which is the collateral for the loan, ensures that the bank can get back the borrowed money. If the repayments are not successful, they can demand that the house be sold in order to receive money to repay with.
This may sound negative but is something positive instead. This means that you will partly receive a lower interest rate as there is a less risk for the bank to lend the money. The smaller risk also means that the chance is much higher to get the mortgage approved even if there are payment notes.
Who lends out then?
Some suggestions on loan institutions that offer mortgages in spite of payment note can be found a little further down this page. There you will also find some brief facts about the requirements that must be met in order to get a loan and how the loan is structured. Then, of course, there are other loan institutions that you can look up around here on the net.