The time that you could finance all the costs and expenses related to your owner-occupied home through your mortgage is over. You can take out a mortgage for a maximum of 101% until the end of 2017; this will be reduced to 100% from January 2018. Consumers will have to turn to other financing options for the purchase and financing costs, the so-called buyer costs, of their house. The expectation is that a resort to consumer credit will be taken.
Less mortgage in 2018
Since we are now in the last months of 2017, there is an urgent need if you still want to take out a mortgage for 101% so that you are eligible to finance the buyer costs with the mortgage. The mortgage application must reach the mortgage provider before mid-November so that financing can be arranged before the end of December 2017. Arranging a mortgage has a specific lead time; time passes because of the collection and checking of all necessary documents and data. The mortgage offer must be completed in 2017; otherwise the new rules and maximums apply.
Consumer credit as a solution
If you are unable to complete the mortgage this year or if you only have plans to relocate for next year, you can turn to other financing options. Taking out a payday loan, the most borrowed form of consumer credit, financing your buyer costs is a good solution: you pay a fixed low interest rate throughout the entire term that is also fixed. Your monthly amounts are also the same; that provides overview and clarity in the financial field. The costs of the buyer can quite well therefore a financing option such as a loan is a nice option: you can pay the costs directly yourself and you pay off the loan in monthly installments.
Do you also want to finance the renovation?
Do you have renovation plans for your new home? Because the mortgage is more and more purely a financing for the purchase of the home, you can also take out a loan for the renovation costs of the home. If you borrow for a new kitchen or bathroom or a dormer window or extension then you ‘improve’ the home then the interest costs of this loan are tax deductible. So thanks to a loan you benefit from a tax advantage.
You can request a no-obligation quote online to finance your buyer costs, the renovation or another loan goal. You will receive a proposal that clearly lists all amounts, interest rates and durations.