Taking out a loan in addition to your mortgage can be useful. For example, if you are going to buy a new house and you do not have sufficient resources to finance the buyer costs. Or if you want to renovate your house, a personal payday loan can offer a solution. Read more about the options for a loan in addition to your mortgage in this blog.
Personal payday loan or mortgage increase?
How you are going to finance a renovation will ultimately remain a personal choice. Several factors play a role. If you want to increase your mortgage, you must again pay notary fees, appraisal and consultancy fees. That can go pretty well in the papers. Moreover, the term of a mortgage is longer than with a personal payday loan. So you pay more interest than with a personal payday loan.
Raising a mortgage takes time and effort
Given the stricter lending standards, there is a chance that your personal situation will not be accepted by the lender. The tax deductibility goes down. This has consequences for both taking out a second mortgage and a personal payday loan. But the consequences are longer with a longer duration (30 years) than with 10 years.
Discover the benefits of a personal payday loan
Taking out a personal payday loan therefore seems a more favorable option than a mortgage to pay for your renovation. With a low amount and a short term, you will be cheaper with a personal payday loan. In addition, you also receive interest relief on a loan that you take out for an improvement to your home. Such as a new bathroom, a new kitchen, dormer window or extension. Moreover, with a personal payday loan you know exactly where you stand. Both the duration and the interest are fixed. With the National Credit Checker you take out a loan entirely online at the lowest interest rates and best loan conditions.