Do not be disturbed, what you read about the mortgage for an apartment, you can boldly use for a mortgage for a house (purchase or construction), even for wooden buildings. The purpose is therefore secondary. More importantly, entrepreneurs, in particular, will learn all the essentials about their income when they want to deal with 100% funding.
This article is part of a large series dedicated to 100% mortgages, which banks are not allowed to provide, but we as skilful people have found their way in the form of overlapping loans.
What income you must have when you want a 100% mortgage?
This is the second problem of 100% mortgage for the apartment, because you have to have income high enough to repay both loans (mortgage and second loan, most often bridging loan from building savings).
What you definitely don’t do?
I have been running mortgages since the beginning, when banks started offering them for the first time. Already at that time, our beautiful country ran advisors, who had already dealt with both the lack of creditworthiness.
They simply advised to submit both applications in one day. I beg you, it is already funny today, banks still look at the registers even before drawing and such a move would certainly evaluate as fraud.
100% mortgage and fixed-term income
First of all, I would like to point out that some banks differentiate income according to whether you have a fixed-term or indefinite employment relationship. For example, Bank counts only 90% of the income from a fixed-term contract, so you are one tenth less creditworthy.
In addition to reducing income for a home mortgage, you must also remember the duration of the employment relationship. Generally, banks do not mind a certain time, but they have their rules.
100% mortgage and business people
For entrepreneurs, generally referred to as self-employed persons, the situation is even more specific, as each bank more or less approaches the calculation of their disposable income differently.