Are you looking for a personal loan to renovate your home?
Of course this type is part of personal financing, choose the most convenient and, above all, advantageous from the fiscal point of view.
I will show you two different forms of financing: the so-called loan restructuring or alternatively access to an ad hoc mortgage.
Why choose a loan instead of a mortgage?
So is it better to take advantage of the personal loan to renovate your home? Or is it better to use the mortgage formula?
There are basically three reasons that can make the decision to obtain a loan through a personal restructuring loan:
- a notary is not required , with the consequent notary fees
- it is not necessary to register the mortgage on the building to be restored
- it is a lean and fast procedure
If you are thinking that these three reasons are sufficient to think about obtaining a loan through personal loan restructuring, by continuing to read this article you will find all the information to understand which loan to choose.
What the restructuring loan can be used for
Restructuring personal loans can be used to finance different types of interventions on one’s home:
- ordinary maintenance work , of limited capacity, such as the restoration of plaster or new flooring
- extraordinary maintenance interventions , which touch on the supporting elements of the house
- interventions to change the perimeter of the house and its appurtenances , such as the extension of the premises or the construction of a box
Who can request a personal loan restructuring
To apply for a restructuring loan it is necessary to have and present
- aged between 18 and 75 years
- Italian citizenship
- a demonstrable income
- a current account
Those just specified are in fact requirements that do not differ much from those provided by other types of personal loans and are used by the bank to evaluate creditworthiness on the one hand .
Naturally, make sure that there are no reports. A further check is the level of income, so as to be able to establish a rate suited to one’s income.
Using particular valuation criteria for personal loans is the way in which banks protect themselves against the risk of insolvency.
Which loan for restructuring to choose?
In the market, as we have already said, there is a very varied proposal for restructuring loans . Some products are advertised by highlighting the very low spread but leaving aside the indication of the APR, which is the true cost of the loan.
Other offers, on the other hand, are limited in time or are tied to different factors, such as the duration of the loan or the minimum and maximum amount obtainable.
Let’s look at some of the offers of Italian banks for personal loan restructuring.
The amount that can be obtained varies according to the credit relationship: current account holders will be able to request a sum ranging from 10,000 to 60,000 euros, while those who hold a postal booklet may request 15,000 to 50,000 euros.
The reimbursement will have to be made in installments of 36 to 120 months or, in the second case, from a minimum of 30 to a maximum of 84 months.
The restructuring loan, with the original name ” ” allows you to request a sum starting from 3,000 euros with a duration of the loan from a minimum of 19 to a maximum of 120 months.
In addition, if the need arises, you can postpone 1 installment every 24 by adding it to the amortization schedule.
To conclude a restructuring loan in advance
Being a very long loan over time it can be useful to know if you can decide not to use the loan anymore.
The law gives the possibility to effect the early extinction of the personal loan received to carry out restructuring works on one’s own home.
If you decide to choose this option, the contractor will have to repay the remaining capital and could also be asked to pay a penalty which, however, should not exceed, by regulation, 1% of the financed capital.
Conclusion: should I use a mortgage or a loan for restructuring?
In reality, everything is in relation to how much you need to invest in the restructuring that you want to implement on your home.
If you want to carry out more substantial jobs that require a greater economic investment and you are not in a particular hurry, given the long bureaucratic process to be undertaken, then it is more convenient to resort to a mutual restructuring.
In this case the amount granted is 80% of the value of the house after the renovation works and the interest rates applied are lower than those for a loan.
If, on the other hand, the jobs to be performed are small and perhaps in a hurry, even if with slightly higher interest rates it may be more advantageous to request a restructuring loan.
Among other things, the latter can be granted in much shorter times without having to involve notary practices.