A payment note can often be a barrier for those who want to borrow money. If it is then a large loan that you wish to take, which a mortgage loan normally is, you would think that it is extra difficult to borrow the money needed.
But this is not actually the case, but it can often be easier to get your loan application approved if it is a mortgage loan you are applying for. The fact that this is to a large extent has to do with the collateral that is behind a mortgage loan and that the bank’s risk is actually not so great.
Home that you buy will be collateral for the loan
The home that you buy will be collateral for the loan, which means that the lender has a greater opportunity to get their money back if you would not be able to handle your payments. They can simply demand that the home be sold and that the money be used to repay the loan.
For example, they cannot do such a thing for a private loan where there is no collateral. Then they are instead forced to rely on the fact that the Kronofogden finds something else to recover, which is not at all safe. It is for this reason that a mortgage loan also has a lower interest rate than a private loan. The banks believe that a mortgage is a safer loan.
Just because it is possible to take a mortgage with a payment note, of course it is not so that you should do so and in most cases you do not have to worry about the bank taking your home. The idea when you take out a loan is of course that you will repay this as planned. What we are only highlighting is why it is easier to get a mortgage if you have payment notes compared to other loans.
The classic banks
Since a mortgage loan is usually so large, every small difference in interest rates will have a great impact on how expensive it is to borrow. This is where the big banks come in as they are often the cheapest when it comes to mortgages. But at the same time, these are the most restrictive when it comes to lending to people with payment complaints. Usually it is hot that they do not lend to a person who has comments.
But this is not a rule but more a guideline. So our tip is that you first contact the bank where you are currently a customer, alternate your local bank, and check the situation with them. You should then contact the bank directly with a contact person. An application online will most certainly be denied.
If you declare your situation, it is quite possible that they approve your application. Then, of course, it is required that you have a good economy in general which makes them feel secure in lending money despite the payment note. But you should know that it is not at all certain that they will approve you even if you have a good finances. However, it does not cost you to make a call with the bank to check the situation.
Another thing that can help is if you find someone who is the guarantor of the loan. In such cases, this person would become liable if you cannot pay and the repayments are not properly handled. Therefore, it is important that you consider this option carefully, both for your own sake and for the one you want as a guarantor.
If you have contacted the local bank and have been denied, the next step is to move on to other lenders. It is true that there are a number of lenders in the market who specialize in lending money to people who have payment complaints. You can find some of these here on the site.
Although these lenders have focused on lending money to people with payment complaints, there is no saying that your application will be accepted automatically. They do a credit check like all other lenders – the difference is that they have a little different rules for who gets approved.
However, the disadvantage of these lenders is that the interest rate often becomes higher as there is a greater risk for them to lend money to people who are not as creditworthy. You simply get a value if you think it’s worth paying a higher price to borrow the money or not. We are not going to say in any way what is right or wrong, because there is no good answer to this question. Your own situation must determine if it is worth the extra money to be able to buy a home.
Consider a more expensive mortgage
What one should keep in mind is that a loan always involves a certain cost. A home loan where you have both a fairly large repayment and interest expense will thus mean that you have to pay a great deal every month. Try to think through if you really can afford it and don’t borrow if you feel your finances are too weak. You can quite easily calculate how much a loan costs each month.
Obviously, if you have payment remarks, it does not automatically mean that you have poor finances. It may just have been some unnecessary carelessness that led to a complaint or is it an old note that still haunts even though you have been arranging your finances for a long time (since a payment note lasts for three years).
However, if you have a little worse finances right now, it might be a good idea to take an extra think. The lenders who approve mortgages with a note of payment are, as I said, more expensive and it is obviously worse to be forced to pay a higher fee when you have bad money. You have to make a good budget and see how much spending you would manage each month and make sure you have sufficient income to do this.
Keep in mind that the interest rate may be low right now but that it will probably go up sooner or later. You must then also cope with the monthly costs of the mortgage with a new higher interest rate. This is often saved in a buffer, but you should also expect to pass a loan that has an interest rate that is a number of percent higher than the current mortgage rate, just to be on the safe side.