What profile to take out a mortgage life loan?
Officially, mortgage life mortgage terms do not impose any maximum or minimum age. In fact, most banks that offer this financial product only offer it to people aged 65 and over who own property.
In addition, to qualify for the mortgage life loan, you must be a natural person. Indeed, associations, or SCI, do not have access to this credit.
The conditions of access to this loan are flexible: there is no minimum level of resources or a state of health to justify.
What creditworthiness to subscribe to the mortgage life loan?
Unlike more conventional loans, the terms of the mortgage life loan are less restrictive with regard to the creditworthiness of subscribers . Indeed, as stated above, there is not a minimum of resources to be had, and to the extent that the borrower does not make direct repayments, it is not necessary to have a high standard of living. .
In fact, the creditworthiness of the borrower comes from his property that he presents as collateral to the bank that lends the capital. The latter recovers his bet on the death of the owner, selling the property or at the sale by the owner himself.
Real estate concerned in the terms of the mortgage life loan
Mortgage life mortgage terms do not apply to all properties. Indeed, to benefit from this type of credit, the owners must put in guarantee a real estate property for residential use. Thus, the latter may concern in particular:
- A building rented to tenants;
- A secondary residence ;
- The principal residence of the borrower concerned.
Note that there is never a transfer of property and that the owner can still live or rent his property during the term of the loan.
Legal conditions of the mortgage life loan
When subscribing to the mortgage life loan, certain legal conditions are to be respected by the borrower and the lender. As a first step, an expertise of the property must be carried out by an expert chosen by both parties. A signature of the loan agreement is then made before a notary. The latter specifies the mandatory information required by Article L.314-5 of the Consumer Code as:
- The value of the mortgaged property;
- The nature of the loan;
- The terms of the loan;
- The schedule of payments in the event of a monthly pension.
Assumptions relating to the duration of the loan such as the overall cost of the loan, the global percentage rate or the indexation method …