The mortgage is a type of credit that is backed by a mortgage guarantee. This is the standard definition, but for more information, we'll go into more detail below.
To carry out a mortgage loan, it must be clear that a mortgage guarantee will always be needed to guarantee the operation. A mortgage guarantee is a property , such as a house, a premises or a warehouse, for example.
The mortgage loan is generally intended for the purchase, expansion or construction of real estate such as a home, offices or commercial premises. But it can also be used for other purposes, such as for business projects, refinancing different loans or obtaining liquidity for a company.
The amount to be requested on this loan will always depend on the mortgage guarantee provided and the charges attached to it. The amount will never be greater than the value of the property.
Main features
The main characteristic of mortgage credit resides in the mortgage guarantee, as we have said before. Everything , absolutely everything, will depend on the quality of the property that is presented as collateral .
For example, it is not the same to apply for a mortgage loan and back it with a real estate guarantee worth € 300,000 with the mortgage already paid, than to request it and provide a real estate guarantee of € 300,000 already with a pending mortgage of € 250,000.
Depending on the guarantee provided and its charges, you can access one financing or another.
Differences between mortgage credit and home loan
Although they are similar concepts and the purpose is the same, to obtain financing, there are differences.
In the mortgage loan , the client will periodically access the amount of money he needs according to certain conditions. A loan is for when the money is needed in phases to carry out a project. A maximum amount is established that can be used, or not, during a certain time.
The mortgage loan pays the entire amount at the beginning and this must be repaid, along with interest, in a predetermined time. The repayment of the loan and interest is made through periodic installments. In this way, both parties know from the beginning the total cost, the periodicity and the installments of the loan.
Assignment of mortgage credit
Mortgage lending is not static. There are two elements in it: credit and mortgage . If the credit is assigned, the mortgage is assigned and, just as the mortgage can be subject to variations, such as the mortgage range, the credit can also be modified by dragging the mortgage, such as the change of creditor.
The assignment occurs when the mortgagee assigns, with just cause, his loan to a third party, who takes over the position of the assignor creditor.
The transfer especially affects three people :
- The creditor who assigns the credit
- The debtor that remains
- The new creditor
The assignment of credits is regulated by the CC, article 1526 et seq., And the assignment of mortgage credits is referred to by the Mortgage Law in articles 149 et seq.
Do not confuse the assignment of credits with:
- Subrogation mortis causa of the creditor
- The cases of merger or division
- The subrogation imposed on the creditor
This is a very, very short and purely introductory summary . It is only the tip of the iceberg if you want to know or find out well what it is or how to carry out a mortgage loan assignment .
In these cases, it is always better to have the opinion of a team of financial experts and lawyers so that each case is studied in a particular way, because all cases must be analyzed in a concrete way.
If you need to make a transfer or information to make one, by calling us at your nearest office, accessing our contact section or filling in the form on the right, we will be happy to help and advise you.
Better mortgage credit
Below we help you how to choose the best mortgage loan according to the needs of each profile.
Before hiring it, it is important to make sure that the company complies with all the legality , being approved by the Bank of Spain, and request from the company that offers the mortgage loan a payment scheme, conditions and commissions attached, among other points.
First you have to do a personal preparation and know exactly the current state of finances. It is important to know these points:
- Know the real economic amount that is needed to make the purchase of the good, or to solve the financial problem
- Check the real value of the property , or properties, to be provided as collateral
- Calculate the charges that are attached to this property, such as the mortgage that remains to be paid
- Make sure how you plan to return the requested amount
When these points are more or less clear, it is time to look for a mortgage loan company .
Secondly you have to look trustworthy companies. Surely, the first move will be to try to access a bank mortgage loan but, unfortunately, it may be that in many cases the bank will deny access.
At this point, you have to resort to alternative financing or private equity . There are different private equity companies in the market, but we recommend opting for a company that has a lot of experience in the sector, that transmits security and transparency and above all, that complies with current legislation ; as is Dark Keep . If you want more information, you can visit our private financing section .
Third legality. As we have said before, we created this point due to its importance and so that, before moving forward, it is verified that the private financing company is registered, approved and regulated by the Bank of Spain . If not, we recommend not continuing with the lender to avoid problems later.
Finally , the signature before a notary. If all the steps have been correctly followed, the mortgage loan can be signed before a trusted notary.