Adjacent municipal land or buy an allotment garden? This wish can be realized. With us you arrange the financing of your land purchase by taking out a consumer credit. The extra land is a great investment; you get more land in your possession and the value of land is very stable and is often even rising. On that extra land you have the possibility to place an extension so that your house is also worth more thanks to the extra space.
You want to expand your own land by purchasing the current municipal garden. What financing options do you have? To finance the land, you can choose to purchase on installment (if this is offered as an option), co-finance with your mortgage or take out a consumer loan.
Paying on installment, a form of buying on credit, seems like a practical solution: you get the land in your possession and pay back the purchase amount plus interest in monthly installments afterwards. You do not have to go to the notary for this type of financing, which is necessary if you finance the land with a mortgage. The interest that is calculated on the option to pay off is high. You often pay the maximum permitted interest rate of 14% instead of the current low interest rates, in addition to the high purchase price of the land itself.
Financing the land with a new mortgage will be difficult because the maximum mortgage amount has fallen from 101% to 100%. The mortgage that you take out for your home does not offer room for financing additional land, costs for the buyer, renovation costs or any residual debt.
Increasing your current mortgage for the purchase of your land means taking advantage of a low interest rate, but you have to go to the notary, you pay the closing costs again for the increase in the mortgage and the lead time is long. You also pay interest for a period of 30 years. In comparison with a consumer credit, the interest rate of a mortgage is slightly lower, but due to the long term you are still more expensive in the long term. The maximum duration of a loan is ten years.
Your own bank will advise you not to arrange the land purchase through a mortgage but will make a proposal for taking out a consumer credit. The interest that the large bank charges for a relatively low amount is high. It pays to compare the interest rates and only then choose a lender. In many cases, your own bank will be an expensive provider.
Our interest, for both the personal loan and the revolving credit, is low. You take out a loan on favorable terms, the lead time is short, you do not have to go to the notary to incur costs and you do not pay any closing and advice costs.
The advantage of a loan is that you can always pay off in the meantime free of charge and without penalty. Especially for high amounts up to € 75,000, in exceptional cases up to € 120,000, we have a Homeowner Personal Loan or a Homeowner Revolving Credit. For the financing of land, a personal loan is chosen in most cases, the loan form that offers security with a fixed interest rate and duration.
Do you have an over-running loan for the purchased land or have you purchased land on installment? Transfer the loan or credit to us free of charge so that you will pay a low interest rate and receive new favorable loan conditions.