Key Features of Mortgage Loans

Key Features of Mortgage Loans – In Europe, different types of mortgage products , credit terms , types of interest rates , LTV. These differences are largely due to differences between national legislation , economic and social policies , as well as historical features .

In addition, there are different approaches to the regulation of consumer rights, also affecting the proposed mortgage. Types of loans , they also differ in terms of the various credit institutions ( mortgage banks , building societies , savings banks , universal banks , etc.).

Adopted in European countries credit terms ranging from 10 to 30 years . And more than a typical loan is a period of about 15 years. Loans with maturity up to 30 years are used in countries such as Germany , Denmark , Austria , Sweden , the Netherlands. LTV varies from 80 % in Denmark and Sweden , to 43-54 % in Greece and Austria.

For reference : LOAN-TO-VALUE RATIO (LTV) – the ratio of the loan amount to the market ( or estimated ) value of the collateral . The lower the ratio, the greater the likelihood that the foreclosure sales of collateral will cover the costs the lender on the loan . Encouraged to adhere to the maximum ratio of loan amount to the market value ( in mortgage lending ) in the range of 80 %, ie credit is $ 80 000 at a cost of $ 100 000 home

Also differ in the prevailing approaches to the applicable type of interest rates on mortgage loans . In the UK, mainly used variable ( floating) interest rate in Denmark – variable and fixed , France – Fixed ( 50%) and variable ( 50% ), Germany – fixed , Spain – Fixed ( 90%).