Among the various forms of loans without payroll made available by banks and financing companies (but not all by all) is the so-called mortgage loan. In reality it is a form of financing that has already existed for several years but has returned particularly in vogue in recent times. Requests for this particular form of loan have actually increased.
So let’s see specifically how to get the mortgage loan without payroll and therefore without having an income derived from work.
Mortgage loan without paycheck
The mortgage loan, also called an annuity, is a particular form of loan in which the loan is intended for individuals who are over 60 years of age and who own a residential property. It is also called life annuity in that it generally has a duration equal to the life of the applicant.
This is a lesser-known form of loan than traditional personal loans, but which in reality has been present for several years in the area of loans in our country.
Born in Great Britain in 1999, the mortgage loan arrived in Italy in 2005 with the art. 11 quaterdecies of the decree law n. 203/2005. Subsequently, in 2015, changes were made to the law governing this form of financing. One of the main novelties concerned the lowering of the contractor’s age to 60 years.
Therefore, if the contracting party has been married or cohabiting more uxorio for at least 5 years in the mortgaged building, the loan contract must be signed by both members of the couple, provided however that the other partner is also 60 or older.
The mortgage loan is a form of long-term financing characterized by a first degree mortgage on the building in which the applicant resides. The duration of the loan generally coincides with the life of the subscriber. The value of the property is therefore established by an appraisal carried out by an expert appointed by the lender.
Given that the building as collateral for the loan is subject to a mortgage, it cannot be sold, is not subject to change, nor can it be rented. It is also mandatory to take out an insurance policy on the outbreak and the fire foreseen by the art. 2 paragraph 5 of the Decree. If, therefore, in the twelve months following the death of the contractor the heirs fail to repay the loan, they may lose ownership of the dwelling.
The creditor must therefore provide the customer with the amount and duration of the credit; the interest rate applied; the total amount to be reimbursed; the APR, or the overall cost of the financial transaction; any extra costs; the number of installments, the amount and time of disbursement; the costs of any early repayment.
An interesting aspect regarding the mortgage loan is the possibility of being able to obtain it even without owning a payslip. But how to do it? What will be the guarantee against the bank or the credit institution that provided the loan?
As is known, the payslip is that document which certifies the salary received monthly by a worker. Payroll is usually a fundamental guarantee when a loan is taken out. However in times increasingly characterized by precariousness it is highly probable that one is in the condition of needing a loan having no kind of contract. This is the reason why banks and financial companies have assumed a more flexible attitude in this regard than in the past.
Therefore the mortgage loan can be obtained even if you do not have a paycheck. This does not mean however that it is granted with ease and without any guarantee. In addition to the residence building, an annuity is also considered an additional guarantee, such as the payment of a rent by a tenant. In this case the loan installments can be calculated on the basis of the monthly rent of the rent received.
How to get a mortgage loan without income
Having explained the characteristic features of the mortgage loan, we have also seen that this is provided even without a payslip, therefore without a work contract. We try to understand even better how to get it without having an income, and what are the requirements to get it.
The mortgage loan without income is clearly a way to provide the loan to those who are unemployed, but they own a property. However, if it is true that some credit institutions and some banks grant it even in the absence of income, it is also true that they can request additional guarantees in addition to the building. For example, it may happen that the lenders of the loan also request sureties and guarantees from third parties as additional forms of guarantee.
Generally speaking, there are two solutions to obtaining a loan without having any income. The first solution is to offer a property as a guarantee whose value is higher than the sum requested. Another solution is instead the more classic one of inserting a guarantor who puts his payslip as a guarantee of payment. An additional possibility to obtain financing is the annuity, to which we have already mentioned. In the absence of these conditions it is difficult, if not impossible, for the financial companies or banks to provide the loan.
In principle, however, the property constitutes the main guarantee, even if from what we have seen it may not always represent the unique guarantee required by the party providing the loan. Therefore, as we have seen, the loan can be granted without income, but not easily and lightly, as it is necessary and always to possess the requisites.
Scheduled time for mortgage loans without payroll
The timing for obtaining this type of financing generally depends on the verification procedures carried out by the credit institution. The timing also depends on the property appraisal to establish the maximum value of the loan and always prepared by the credit institution. Generally the sum paid is never equal to that of the property value and, in principle, does not exceed 80%. Only in rare cases it reaches 100% when the borrower also offers other guarantees, such as a possible payslip.
Generally speaking, the mortgage loan is quite cheap for those who need to obtain loans of around 50,000 euros, with monthly installments and an amortization plan with an average duration of 5 to 25 years. However, it is also indicated when 30,000 euros are requested.
Below these figures it is almost always preferable to request a personal loan. The latter in fact does not provide the notary fees present instead with the mortgage loan. Furthermore, personal loans are usually granted in a shorter time. Think of the infamous loans granted within 48 hours, if not even 24. The mortgage loan generally has longer timescales, precisely because a property must be subject to appraisal.
Regarding the documentation, the documents necessary to obtain the mortgage loan, to be presented to the lender, are the certificates that attest to the ownership of the property, the identity card and the tax identification number of the applicant.
The mortgage loan is very similar to the traditional home loan. The element that unites them is in fact the mortgage on the house. In fact, when you buy a house, the bank provides the mortgage after having placed the mortgage on the borrowed building, which is usually twice the value of the house. The difference between the mortgage and the mortgage loan, however, lies in the fact that in the second case the value of the property constitutes the means by which to calculate the maximum sum payable for the loan.
Returning to the mortgage loan without a payslip in the event of insolvency on the part of the contractor, the banking and financial institutions intervene by appropriating the property. More precisely, the lender becomes the owner of the mortgaged property and can resell it to obtain the financed amount. The mortgage in fact limits the right of ownership to the point of causing its forfeiture if the failure to pay two consecutive installments occurs.
We also remind you that an asset can be burdened by multiple mortgages. In this case, each credit is given an order, which is called a grade. In the case of a forced sale, the proceeds must therefore satisfy the creditors according to their level.
If at the death of the beneficiary of the loan the debt has not been paid off, the bank or financial institution has the right to sell the property and the heirs can obtain the difference if the sale price is greater than the residual credit. If, on the other hand, the selling price does not suffice to pay off the borrower’s debt, the bank cannot claim anything from his heirs.
The heirs may also decide to redeem the property by paying the remaining credit to the bank or finance company with which the loan was established. Within 12 months of the death of the property owner the heirs must repay the loan or sell the house and turn over the sum to the creditor. If the sale by the heirs does not go through, the bank or the credit institution therefore has the right to sell the house. If the sale does not take place within two years of the owner’s death, the price is reduced by 15% every year until the house is sold. If the proceeds from the sale do not cover the credit, the lender cannot ask the heirs for more.
The life loan therefore presents a decidedly more complex mechanism than personal loan. If you have all the requisites required and are planning to evaluate it as you are in the condition of not having a payslip, it is worth considering several aspects. For these reasons it is therefore good to understand what the conditions and characteristics of the annuity loan are if you intend to subscribe it.
Mortgage loan interest rates without payroll
First of all we must take into account that in Italy this kind of loan has higher interest rates compared to those of other European countries where this form of financing has existed for much longer.
However, if the interest rates on the mortgage loan are compared with those on personal loans, the mortgage rates are lower as they are linked to the Euribor. The latter is a reference index calculated on a daily basis which determines the average interest rate in the Eurozone. The rate may therefore be fixed or variable, which means that the changes in the Euribor will follow.
Another little advantageous aspect of the life loan is the taxation because the property is not transferred to the bank. As a result, the owner of the home subject to a mortgage continues to pay property taxes on ownership.
To get an idea of the mortgage loan in a more concrete way, you can use a simulator on the MutuiOnline.it website. After filling out a form with your data, you can find the solutions best suited to your needs and compare the loan proposals of banks and credit institutions.
It should also be noted that the mortgage loan is not a service offered by all banks and credit institutions. Among the aspects that must be considered when applying for the mortgage loan, in addition to the high interest rates, are the costs of the notary whose fee will be calculated on the value of the mortgage registration. Only then after a careful evaluation will it be possible to consider applying for a mortgage loan.
In addition to giving the opportunity to request it without income or payroll, it is still a loan with numerous constraints. In addition to an expert consultant, you can still read the opinions of other users who have had the opportunity to subscribe to it. Furthermore, it is advisable to visit the websites of banks and credit institutions to find out whether they are providing the mortgage loan and to know the various conditions and characteristics of the loan.