Many people wonder if, while they are paying their mortgage, they can take out a personal loan . Conversely, there are those who are still paying off one of these loans and need a great injection of liquidity. For example, to take advantage of a real estate opportunity.
How mortgages and personal loans work
The legal system says nothing about the existence of a credit accumulation limit. This means that it is perfectly legal to take a mortgage while a personal loan is being amortized or to do it the other way around . This situation is reasonable and even normal. Otherwise, whoever applies for a mortgage loan would be excluded from the credit circuit for twenty or thirty years (in the best of cases).
Outside the legal aspect is the economic issue. Each one has its own debt capacity , which depends on different factors such as: levels of income and expenses or the guarantees it can provide. Thus, mortgages tend to be cheaper than personal loans ; but this is due to the type of guarantee they carry. Of course, it will be easier to pay two mortgages than two personal loans , due to their price.
However, what will not be so easy is to ask for two mortgages. For this, at least two properties will be needed on which to establish the guarantee. Therefore, not everyone has such a real estate park at their disposal. It should also be remembered that in case the borrower is not able to repay all his credits; mortgages and personal loans will have a different claim regime .
While the personal loan must be claimed within a period of 5 years, the debtor's assets can be seized for payment. (As long as it exists), the mortgage can be claimed in up to 20 years, and a foreclosure can be promoted.
Yes you can apply for a mortgage at the same time as a personal loan
In short, the differences between the mortgage and personal loan vary in terms of their execution regime, price and ease of granting. Outside of these elements, it does not matter that two or more credits concur.
So everyone can combine different types of credit products . Provided that the person takes into account to what extent they can get into debt and what will be the price of not paying the agreed installments. On the other hand, these are not the only financial products that can be contracted simultaneously. Nothing prevents, while these are being amortized, resorting to other credit systems such as:
- Credit cards or revolving .
- Deferred purchases.
- Credit lines.
The only difficulty that the borrower could encounter is that the lender does not want to grant him credit. In these situations, you only have to consult with other operators about the conditions of a mortgage or personal loan . In addition, these are usually complementary sources of financing. The simplest option is to consult comparators such as Ideal Loans and choose the one that best suits you.