Unlike a personal loan, in a mortgage, the first guarantee is a property. It is not the only one, since, after the sale of this home or land, the resulting money is not enough to pay off the debt, they will go to the rest of your estate.
This real guarantee that reinforces the position of the lender is the one that allows obtaining a mortgage for other purposes, such as expanding your mortgage and receiving new funds, mainly when you have been paying your mortgage for a long time and have amortized an important part of the capital; that is, when the value of the mortgage guarantee, your home, is much higher than the sum of what you have left to pay for the original mortgage and the amounts you need to unify. Technically, therefore, it is possible to reunify debts by extending an already granted mortgage, but also by requesting a second-class mortgage or by canceling the mortgage and constituting a new debt reunification mortgage, the amount of which allows the previous mortgage to be canceled. , group the debts and cover the costs of the operation.
To take into account when hiring a mortgage to reunify debts:
Gathering debts through a mortgage has advantages over other types of loans, especially in the possibility of obtaining the money and the cost of it.
The interest rates on a mortgage are in most cases lower than a personal loan.
Interest and commissions are not the only expenses of a mortgage to reunify debts: it is also necessary to take into account the notary fees, registration, Tax of Documented Legal Acts and those derived from a new appraisal of the property, in addition to commissions and expenses of canceling the debts that we are going to reunify.
Look for costs to be lower: many of the expense items are fixed, but others such as commissions or pricing can be avoided. Try not to be forced to hire a new valuation if the total percentage to be financed is well below the market value of the home. It is very likely that debt reunification mortgages do not even need an appraisal since with the data handled by Google or Facebook it is possible to value real estate in real-time.
Check that your taxation does not get worse: if you cancel your mortgage to constitute a new one for a higher amount instead of expanding the existing one, you will not only pay more, since the notary, registration and tax expenses will be higher, you will also lose the deduction that you were entitled to your original mortgage if you hired it before December 31, 2012.
Check its viability in advance: if the sum of the amount coming from other debts to what is left to pay for your mortgage exceeds 80% of the approximate value of your home the possibility of concession will be very complicated, if not impossible. If the mortgage-based debt reunifications granted by banks often do not exceed 50% of appraisal, mortgages to reunify that one day is granted in Spain are probably limited between 80% and 50% of the appraised value of the property to the mortgage.
Optimize the term of the operation: the longer it is, the more time you will have to distribute the important expenses that the contracting of this product can have. More term less monthly fee, but you end up paying more interest at the end of the operation.
Advantages of a loan to reunify debts
Crowdfunding or crowdlending loans are also a perfect option to reunify long-term debts, with advantages that we must take advantage of:
It has fewer expenses: you do not have to go through a notary, registration and of course pay taxes.
You can adapt your term more easily: Being unable to be flexible in the amount since it covers all your debts if you can be in the term. Take advantage of the possibilities of repaying loans without expenses or with very limited commissions if in the future you have money to shorten terms.
You can easily compare between different possibilities: Without the need for expensive intermediaries, directly and transparently in their conditions.
Eliminate your bank risk: from having loans or debts with credit cards, with defaults or not, which are calculated as bank risk that appears in the CIRBE (Central of Risk Information of the Bank of Spain), you will have a single operation that not being financed through a bank this risk will not appear.