Do you need help getting a mortgage, or are you struggling to take advantage of your real estate equity to get a loan? If you own other property or have friends or family who own their own property, you should consider applying for multiple collateral mortgages. The average consumer has no idea that he can use several guarantees to get a mortgage. However, it is a tool commonly used by private mortgage lenders.
How does it work?
A multi-guaranteed mortgage works like a regular mortgage. You simply need to provide more than one form of guarantee. Generally, the two types of borrowers looking for loans are:
A person who owns several properties
A person who has a friend or family member willing to take advantage of their own property to help get the mortgage loan
If a friend or family member make their property available to assist you in approving a loan, both of you must go through the same approval process to qualify for the loan (which means that the lender will check your credit history with you and your co-signer). Once the loan is approved, both parties also become responsible for the loan, being both co-borrowers.
Who can take advantage of a multi-collateral mortgage?
Everyone can take advantage of a multi-collateral mortgage. This is an excellent option for different borrowers, among the following:
- Canadians may have credit problems and be poor in money but rich in equity
- Those looking to get their first mortgage but who have financial problems to surpass
- Those who have been able to repay a large portion of their mortgage and wish to use it to get the money they need
- People looking to get their finances back on track or wanting to pay off their high-interest credit card debts
- People looking to finance renovation projects at their home or other major projects
Multiple Guaranteed Mortgages are not just for people with limited access to credit. They can be beneficial for any type of borrower who has trouble getting a bank approval for any reason. This type of mortgage is highly customizable.
What type of lender accept multiple guarantees?
In general, you will be more likely to be approved for a multiple-collateral mortgage with a private lender than with a traditional lender such as a bank. The requirements and restrictions of traditional lenders are often stricter, although they accept certain multi-collateral mortgages. Nevertheless, private lenders are more willing to work creatively with people to help them achieve their goals. They tend to see the whole picture and understand the position of the borrower. They place less emphasis on the rigid criteria to which banks depend more.
Frequently asked questions
Can a family member sign my mortgage?
Yes. Lenders can often accept the signature of a guarantor if the guarantor is in a good financial state. However, sureties that co-sign the loan of a risky borrower may be asked to put a guarantee too.
Can a friend sign my mortgage?
Yes. However, as mentioned above, if your lender decides that you are a risky borrower, your co-signer may be asked to put collateral in as well.
Can I ask a friend or family member to sign without providing a guarantee?
Yes, but mortgages are approved on a case-by-case basis. It depends entirely on your financial situation and the financial situation of your friends or family members. You must discuss this with your mortgage lender.
Need more information?
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