Look at the possibilities of a mortgage and take into account, for example, the effect of a term life insurance policy. Furthermore, it is worthwhile to take a good look at the minimum fixed-rate period and the possibilities for financing a renovation. We list the tips.

Mortgage with competitive interest

The mortgage is still the best known and most popular choice to increase the maximum mortgage. There are useful tips, for which you don’t have to do much. Get a mortgage below the limit, which nowadays depends on the average price of homes in the UK. Below that limit you are eligible for such a mortgage. The big advantage is that the Home Owner’s Guarantee Fund (WEW) covers the mortgage. Through the National Mortgage Guarantee (NHG). Are you experiencing a divorce or are you unemployed and unable to pay the mortgage? Thanks to the guarantee, there is no residual debt. That is nice for you, but also nice for the bank that provides the money. This is what comes out of the Mortgage Advisor London now.

The risk for the bank decreases, giving you the chance to agree on a lower interest rate. The interest rate is generally the same as the lowest interest rate at the bank, with no risk premium. That lower interest rate then ensures that you have the opportunity to increase the maximum mortgage. Thanks to the lower interest rates, the monthly payments are lower, giving you the opportunity to borrow more. This is a handy tip, which means that with you may just be able to buy the property that you have in mind.

Mortgage with a life insurance policy

Of course there are more tips to increase the maximum mortgage. You can, for example, use a life insurance policy for this. By combining this with the mortgage, lenders are sometimes willing to lend a higher amount. That has again to do with the risk that they run, when they give you the money.

If you use a life insurance policy, the risk for the bank decreases that you can no longer pay the mortgage. If you both take out the insurance on each other, it has no financial consequences at the time that one of them would fall away. This creates certainty for the bank. The interest rate can be lowered, which increases the chance that you can take out a higher maximum mortgage.

Minimum fixed-rate period

Other banks offer you the option of choosing a longer fixed-rate period. For example, they offer you the option of taking out a higher mortgage if you opt for a longer fixed-rate period. From 10 years on, it is possible to achieve such benefits. And with a fixed-rate period of 15 years or 20 years, the chance is even greater that you will have the chance to borrow more.

Banks can thus assume that you can pay the costs both now and in the future. Thanks to the fixed-rate period, the interest costs will not just run high, which again ensures security at the bank. On the other hand, keep in mind that you pay a slightly higher surcharge.

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