The amount granted in mortgages for a second home is lower
In the case of mortgages intended to pay for a second residence, banks usually grant between 60% and 75% of the home valuewhile in traditional ones it is usually up to 80%.
To buy a second residence we will need to have more savings
Given that, as we have just commented, in most cases the bank will grant us 60% of the value of the house, we will need more savings for pay the entrance of the property. In total, 40% of its value, plus 10% moreto defray the costs of formalizing the mortgage.
The term to repay the money of a mortgage for a second residence is less
Mortgages intended to pay for a habitual residence can be repaid in 30 or even 40 years, while those intended for financing a second residence must be paid within a maximum period of 25 years.
Mortgage payments for a second residence are higher
Since we will have less time to return the amount that the bank has left us, fees will also be higher. In addition, most banks also apply a higher interest when financing a second residence.
–
