An alternative to a large number of people who can not afford for a mortgage is eligible for housing reform instead of buying a new floor. This option is covered by a specific product offering a number of banks and savings banks have decided to add a credit arrangements. These loans are to finance the reforms of the household kitchen and bathroom fittings, air conditioning and heating, windows and floor shift, carpentry and painting. With this agreement, participating banks, are required to provide credit to economic advantages for homeowners who request them. With these credits, homeowners can make changes to your floors and adapt to the rental market and then finance the work under a part of the monthly rent from your tenant will receive all this through the Municipal Agency Rent.
Perhaps this measure will help the housing sector take a little more movement, because that owners of flats who purchase credits to reform their homes may pay with cash them a share of the income earned from renting the property when renovated, thing they do not come so bad in these times of crisis. It really is much cheaper to borrow for housing reform in an amount of 10,000 to 60,000 euros to face a mortgage average between 150,000 and 300,000 €. The repayment term is 10 hands and the average interest rate applied ranges between 7 and 9%, which must be added the end fees and early redemption contemplating some banks and, generally increases final amount to pay between 1% and 2.5%. Other issuers use a strategy of reclaiming the credit business who hires a product with them, but the amount deducted is the same, never exceeds 0.5%
Funding from 10,000 to 60,000 euros, the main entities that market the reform of home loans are as follows, with similar conditions, but which are within the time allowed to cover the debt and commissions:
- BBK has a credit for home improvement that allows pay reduced fees to exchange for a longer repayment term. You can request this funding from 300 to 60,000 euros, with a maturity that reaches ten years and a depreciation system through a share constant. In this case, it applies an interest rate from 8.24% (8.81% APR). Thus the fee for a transaction of 6,000 euros to ten years, for example, is 73.56 euros each month, which also should be added a 1% origination fee and a 2.50% early repayment .
- Caixa Catalunya, under the name “Home Loan Reform, a product marketed by a maximum of 40,000 euros with a term of ten years, and with the possibility of early redemptions and cancel the loan.
- Caixa Terrassa has developed the formula revolving credit Home “. The homeowner gets to pay 60,000 euros for ten years and his main contribution is the possibility of making repayments at no cost.
- Caja Murcia bet “Your Credit Reforms. This is another product that helps the user to perform the work required to house a maximum of $ 10,000 and a repayment term that rises to seven years.
- The “Kutxa” tender “CrediKutxa home renovation, for a maximum of 50,000 euros and up to ten years. It applies an interest rate scales according to their duration: 6.75%, up to two years, 7.25%, two to six years and 7.75%, six to ten years. Its main advantage is that it provides for bonuses of between 0.10% and 0.50% for people who have hired a payroll, pension, life insurance or provident or pension plan with the Basque. It has a fee of 1%, with a minimum of 20 euros. This loan includes a total lack defer to start six months of loan repayment and accommodate customer needs. The interest earned during this period are accumulated to the amount of loan requested, with a maximum of six months.
- Unicaja has decided to include this product on its list of credits under the name “Home Loan” for a maximum of € 42,000, repayable over a maximum period of eight years with monthly payments on variable rate renewable every half, and tied to Euribor one year
- A different formula is that used by Caja Laboral through the “Loan Desahogo” a new form of personal loan that lets the owner of the dwelling to meet the payments of a calmer way. It’s the same applicant who sets the pace of depreciation in terms of their economic possibilities, paying less when they increase the cost or more in times of greater tranquility. This product is also characterized because it provides for entitlement to a period of up to six months in which only interest is paid and may lengthen the maturity of the loan the same period of time relative to the requested absence. And does not include any commission for early partial or total cancellation.
- The Laser Technologies, along the same lines, has launched its latest offer to the market the “BG home improvement loan. Another personal loan whose final destination is financing the renovation of housing for private customers a maximum of up to 30,000 euros, to returning to a deadline that about six years. It is characterized mainly because you can hire a fixed rate or variable to choose by the client.
- Caixanova and Caja Segovia are other entities offering the hiring of a product with these characteristics, and applying an interest rate based on the amount contributed and the selected mode.
Bonus for the energy efficiency of housing.
If customers of credit for remodeling your home will be transformed as well as improving the efficiency of your home, some financial institutions provide for inclusion in this product increases the interest rate applied in the first instance of so the user can hire under terms more favorable to their interests. To get this discount, at least half the budget of the reform should correspond to the following: placement of awnings, windows or insulation in the walls of the house, and introduction of renewable energy facilities, solar energy, wind domestic or domestic biomass.
