We often have no creditworthiness, and being in a debt loop, we grab every lifeline. Mortgage loans against a house or flat are just such solutions. What does this type of financial commitment look like? Can anyone use this solution? And above all, is it worth it and is it a safe form of borrowing the money you need?

Disadvantages of a mortgage loan

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As with any contracted financial commitment that we do not pay back on time, there is always the risk of loss – whether it is a larger amount of money (high costs of secured loans) or, as in this case, real estate. It all depends on our reliability in paying off subsequent mortgage installments.

The second issue is the lender’s integrity and the resulting content of the loan agreement drawn up between the loan company and the borrower.

Although there is a need to meet with a notary public

Trusting him 100% that he checked everything reliably before establishing the act may often disappoint us. Yes, a notary public should read the loan agreement in detail, but unfortunately it is very different in practice.

Therefore, in order not to be deceived and lose your roof over your head, it is worth spending time and seek expert advice on this type of mortgage loan agreements. The opinion of a lawyer or Financial Ombudsman will also be helpful here.

Is a mortgage a safe solution for your financial problems?

Answering the above questions – yes and no. If you really have no way out and such a loan against your apartment is the only way to get out of debt, it’s good to be well prepared for it. Knowing the pros and cons of this type of solution and the elements of the loan agreement that are worth paying attention to, we choose a reliable and proven loan company that appears in the National Court Register and already has a group of clients. Another and final solution to get out of debt is to declare consumer bankruptcy in court, which allows you to reduce or completely write off the debtor’s liabilities to creditors.