Many people have multiple loans running simultaneously. For example, people quickly borrow for a car and a house, because those costs are simply too high to pay in one go. But often there are also other credit openings with very diverse (often high) interest rates. So why not go for the cheapest? Banks do not promote the merging of loans. That is precisely why it is worth comparing online lenders. Bringing together your mortgage and loan (s) is perfectly possible. Moreover, it can be interesting with the current low interest rates. Just check it out with, for example, a mortgage broker.
Despite the low interest rates, many loans are still offered at often high interest rates of more than 10%. People are often not aware of solutions. If the total debts remain below the value of the home including the costs, it is often worthwhile to combine the mortgage and loans. Even other credit openings such as a credit card and a Carrefour card can be combined with a mortgage. In Belgium, this has been possible since April 2016. Be well informed about the conditions and costs that must be incurred.
Pros and cons
The advantage is obvious. In the current climate, merging can start from a low interest rate of, for example, 2.1%. The disadvantage is that for a mortgage you always have to go to the notary, which entails some costs. Depending on the value of your home, all costs can be co-financed. The value must be at least 10% higher than the sum of the total debts and costs combined. Of course, the amount of your income is also taken into account for the new loan. It is therefore important to do a small information round, to analyze your situation and to make a good overall account.
How do you proceed?
How do you proceed now to merge all those loans into one loan? Well, choose a lender where you want to bring all loans under one roof. The person who asks you the cheapest interest is of course. Always inquire about the costs. Today in the internet age it is relatively easy to compare providers and financial products. You will find numerous comparison sites and websites where you can start simulations. Moreover, you do not have to leave the house and you do not have to make any agreements. A laptop and access to the internet is sufficient.
You approached a bank of your choice with your request to merge the loans. The current loans that you wish to transfer to the other banks that will be bought off. And so the outstanding amounts are shown on one loan and you pay another monthly amount at one bank. It couldn’t be easier, right? Then you know what the monthly amount is and at what interest rate. Moreover, keeping this overview is a very good thing and you can certainly consider implementing this.