Why take out a mortgage loan?

In life, you can sometimes want to acquire something, without necessarily having the necessary amount for this purpose. If you want to buy a house for example or get a new car, know that it is possible to request a loan from banks or various credit intermediaries.

The loan you take out is generally called a “mortgage loan”. For this purpose, the lenders may possibly lend you the amount of money that you lack. You will then reimburse the latter in installments and in exchange for this loan granted, you will pay interest as well as costs. Find out why it is worth taking out a mortgage loan.

Useful information on mortgage credit

Useful information on mortgage credit

Mortgage credit is a type of bank loan that can be granted to you, by guaranteeing one or more of your real estate. This loan can be set up both for the acquisition of a new property and for an investment in an old heritage. It should be noted that the pledged goods must belong to you in your own name and no joint and several guarantees can be accepted.

This means that you do not have the right to guarantee, even simply a mortgage, for property belonging to third parties. Furthermore, the mortgage allows your bank to be sure that it can recover the entire amount. the amount you have loaned if you stop repaying. Thus, it will seize your property and then sell it, in order to restore the loan that you initially expected.

The mortgage is open to anyone who is experiencing financial difficulties. It can also be granted to a person who has an essentially real estate heritage, wanting to constitute investment, without giving up his personal property.

The borrower can be a simple employee, a trader, an executive in a company or even a retiree. The amount of the loan is determined via a technical examination of the value of your real estate assets. This amount is generally between 50 and 70% of the estimate of the property and is thus quite limited.

What are the types of loans?


There are two different types of loans for an individual like you. Indeed, financial institutions can offer you a mortgage loan or a consumer loan. A mortgage is the amount of money you borrow especially when you want to buy a house, land or finance work for your home. It is generally a fairly large amount, with a repayment term extended over time.

When it comes to applying for consumer credit, you can apply for it if you plan to buy a new car, finance personal needs, and even plan your wedding. Unlike the mortgage loan, you will, therefore, have understood that the amount borrowed will often be less and the same will be true for the duration of repayment, which will also be shorter.

The advantages of mortgage credit

The advantages of mortgage credit

  • Thanks to a mortgage loan, you have above all the possibility of financing your property purchase project, in particular when no conventional loan has been granted;
  • Even the elderly can aspire to obtain credit in order to acquire a new or old property;
  • No loan insurance is required, but you can sign one if you wish, without it affecting your credit application;
  • No domiciliation of income or request for investments is necessary, even if you only have property income instead of arrears or professional activity. The evaluation of intrinsic income will be even more interesting;
  • If you are a business, you can buy real estate, for example, to help children with their studies. Later, you will be able to rent the property or make a donation to the children themselves.

The special features of a mortgage loan

In the event that you are not the sole owner of the property that you wish to cede as a guarantee, those who are in bare ownership or in usufruct will have to vouch for your commitment.

A mortgage credit can also be fine. This is a loan for which you will only pay interest during its term. This period is included between 7 to 15 years and the notary will give you a cash agreement when you sign the notarial deed concerning the loan. Be careful, however, because you will necessarily have to sell real estate so that you can repay the amount borrowed in the prescribed period. You cannot request the transformation of a loan in fine into a repayable loan.

P2P loans or peer to peer through loans between people.

Surely you’ve ever heard of P2P loans or peer to peer on the market.  Basically these are loans between people where the person who lends the money is another individual.

It can really be a private individual or company, what is certain is that it is not a financial company, as if it were the banks. Unlike years ago, more and more people know the uses of this financing.

This is most likely considering the growth that private loans are having in the financial sector.  It is this type of loan signed by investors and other private lenders that increasingly represents a higher percentage of financing.

Unlike banks, p2p loans continue to offer new financial alternatives as the years go by. Not only that, through this financing applicants can get money in impossible situations by bank. Which is certainly one of the reasons why people request this financing. It is not the only thing that is all said, in fact this type of credit has one of the best business loans seen in the market.

What are P2P loans?

What are P2P loans?

They are credits between individuals where both creditor and debtor are people. Instead of being the creditor a financial entity (bank, financial establishment) they are private individuals. For this reason, they are called this way.

Not only this way, if we talk about private, private or private equity loans, we are talking about the same type of financing. The difference perhaps is that people associate p2p loans with other types of credits. Many times this financing is actually associated with crowdlending or crowdfunding.

That is, a type of credit for entrepreneurs where the person who asks for the money is a company / entrepreneur.  They are also lenders who lend the only thing is that they do it not so much on the basis of guarantees but on the basis of the business project.

Characteristics of p2p credits signed by people

Characteristics of p2p credits signed by people

When talking about these credits, the first thing people want to know is their characteristics. They want to know to decide whether or not they might be interested in carrying out the procedure.

From Spin Lender what we can say is that everything depends on the processed product. In the same way that there are private loans without collateral, there are also those that will require guarantees.

Now there are a series of characteristics that if we see how they are repeated in all p2p loans

  1. They are always faster than those signed by traditional financiers. In this way they can be seen as fast loans .
  1. The processing of the same will always be carried out on the internet.At least what is the processing of the credit because the signature if it is in person many times.
  1.  The APR of these loans between people is usually higher than that seen in banks. However, this cost difference has been decreasing in recent years and is currently small.
  1. These loans are offered by private financiers and financial platforms.
  2. There are business loans and loans for individuals.
  3. They can be processed in situations of all kinds, not having as many problems as instead if we see in a bank. It is possible to obtain financing being in Financial Credit Institution, without demonstrable income or not having financial stability. Even so, from Spin Lender we recommend that clients consult in advance as each loan is different. That there are loans with Financial Credit Institution within the p2p credits does not mean that all of them can be processed in this situation.
  1. They can be considered as loans without paperwork because compared to other financial companies, little is requested.

Requirements to obtain financing between individuals

Requirements to obtain financing between individuals

Despite being an increasingly recommended type of loan, not everyone will be able to apply for this financing.  Whether you are a company or an individual, you are interested in reading this section if you have in mind to request one of these particular loans.The requirements of this financing may not be as high as that of the banks, but they also apply. 

Among some of the main ones we can point out:

  1. In case of being a company you have to go to a Crowdlending financial platform also having to have a business project . If you do not have any project do not go to any of these platforms because it will be a waste of time. Having a business plan, feasibility study is mandatory for all companies and entrepreneurs who want to obtain loans without collateral. If you do not want to provide such documentation, what you will have to do is process with a guarantee where it will not be necessary.
  1. For medium or high amounts it will always be necessary to provide guarantees. P2p loans being private lenders who lend is something that they will demand from a certain amount. In amounts less than 6000 USD if it is relatively easy to get without a guarantee. When the amount is higher the situation will be different.
  1. If you want to obtain financing without a guarantee, it is necessary to have demonstrable income of some kind. It does not matter if they are low income, if you can justify something welcome it is. The most complicated thing is to get loans if you do not have any kind of proof of income. Before if it was possible, nowadays after the changes in the financial sector it has become more complicated.
  1. Financial Credit Institution may or may not be a problem depending on the credit processed. If you provide guarantees it is indifferent, it depends on personal loans. There are some that can be signed while in a register.

Who goes to peer-to-peer loans?

Who goes to peer-to-peer loans?

All kinds of people do it, also those who by bank could obtain financing. There are also people who turn to this financial alternative because they think that by bank it will not be approved but they are the least.

A significant percentage of those who resort to this financing do so for other reasons. Speed ​​is, in our opinion, the main one of all of them because the difference in terms between financials between people and banks is abysmal.

Just as a private equity mortgage can be signed in 7 days a bank mortgage we speak of months. This difference at the end is noticeable and marks one before and after in the financial sector.

Advantages of private loans

We can talk about the possibility of signing complicated loans as the option of obtaining financing for companies . As for the processing requirements, they are also small, thus being fast loans without paperwork.

And what are most people looking for today when they are looking for a loan?  So we have been able to check speed, ease and little paperwork.