In addition, it is not said that the bank agrees to grant you this second credit. (Depending on the debt ratio).
If the work is envisaged while the credit of the house is being refunded , several solutions are then possible:
1) If this is work to improve the energy performance of housing , find out, because it is possible to get help or loans at very attractive rates, or even 0%. Some are subject to income ceiling, we can cite a few: The National Housing Agency (ANAH), or the loan of improvement or expansion of the CAF. In some cases, pension funds may grant you one-off assistance. Without forgetting of course the zero interest rate loan whose interest is financed by the state, this loan can be contracted in any bank. If these aids and credits are not sufficient, it is possible to supplement the sum with a bank credit. (A loan works)
2) If the amount needed for the works is more than 75 000 euros , you will be forced to take out a mortgage.
Advantages and disadvantages of home loans compared to home loans:
- There is no cap, the only limit that will hold the bank is your ability to repay.
- The maximum duration is longer, depending on the banks it can go from 20 to 25 years and sometimes more.
- The interest rate is lower than that of a work credit.
- The bank will take guarantees (mortgage, bond, surety etc ….), and this at a significant cost that must be taken into account.
- Banks still require the borrower to take out at least one PTIA death insurance on the loan.
3) If the amount to borrow is less than 75 000 euros you can consider a credit for consumption, in this case a work loan. Be aware that if the work to be done is renovation or insulation, your bank may be able to grant you a loan more advantageous than conventional work credit. (Some banks lower the credit rate in some cases)
Advantages and disadvantages of credit works compared to the mortgage:
- It is capped at 75,000 euros.
- The repayment term is 10 years maximum.
- Most of the time there are no fees.
- Insurance will not normally be required.
- No guarantee.
We hope that these few lines will have helped you to see more clearly in order to choose the financing best suited to your situation, to go further, do not hesitate to take information on specialized sites, opinions on credits for example. Do not hesitate to inquire about loans between individuals (but managed by profesionel as younited-credit.com for example)