With mutual liquidity , considerable amounts can also be borrowed without having to link them to a specific use. Among the various forms of loan, various categories can be identified: personal loans can be requested for any purpose, while those aimed at are provided to meet specific needs and money cannot be used for other purposes. The loan is instead a loan aimed precisely at the purchase or renovation of a property. Mutual liquidity is placed halfway between mortgages and personal loans, without however requiring the user to use the resources obtained in a finalized way: the amount can be used to purchase a car, finance the studies of the children, perform works of maintenance or other.
The other feature of this loan is the use of the home as a real loan guarantee
A requirement that allows the applicant to obtain a higher liquidity, so much so that sometimes the banks set a minimum threshold of 50,000 euros for these loans. The guarantee will take the form of a mortgage (as is usually the case with traditional mortgages). For this reason, the property must not have already been mortgaged for some other financing. Furthermore, it must perform the function of first home for the applicant.
Without compliance with these conditions, it is impossible to access liquidity loans
The amount that can be obtained on loan, called the minimum threshold of 50,000 euros, depends on the market value of the property as a guarantee and on the applicant’s job position. In fact, in addition to the mortgage, the bank will also require a stable financial situation as a guarantee: therefore, an employee with a stable income could get up to 70% of the value of the house on loan, while a self-employed worker could reach the maximum at 50%. In any case, it is not possible to apply for this funding after the age of 75.
Mutual liquidity could also guarantee lower interest rates, considered a very solid guarantee like that of a first home. However, compared to personal loans, the bank’s controls and preliminary investigation procedures will be longer and more accurate, so it may take longer and some more difficulty to get the money. These practices are then reflected in higher preliminary costs, as well as for any notary and insurance costs.