Credit register: How does the mortgage market shuffle?
The difference between a favorable and a disadvantageous mortgage may mean a difference of hundreds of thousands of crowns. Choosing a suitable loan is therefore often during long months. The scenario is identical; using a mortgage calculator, visiting banks and making non-binding offers. The last step should then logically be the application for the exact form of the loan at several selected institutions and the choice of the most advantageous. Unfortunately, it’s not that easy.
The basic economic lesson says that business must lead to profit – otherwise its long-term operation is unsustainable. Regular mortgage payments are essential for mortgage lenders, it is only after years of repayment that the mortgage loan is settled and the bank is finally making a profit.
Bonita in the lead role
Banks have several mechanisms to assess whether a mortgage applicant will actually meet his obligations. One of the most important is the level of creditworthiness.
In calculating it, banks shall examine the applicant’s credit history in the relevant registers. Regular repayment adds points to the good , but late payment is a reason to refuse the mortgage. But it is not only about loans and receivables from the past – the registers will receive an application that the bank is still processing. And this is where the buried dog.
With requests carefully
This is because bank officers will only enter the registers if they simultaneously enter your loan application. However, this will fundamentally affect the creditworthiness rating of another bank and hence the ceiling of the amount it will be willing to provide.
After several similar requests for a binding offer for a mortgage loan, credit registers will evaluate your behavior as risky , and you will be able to forget the mortgage.
Banks recommend withdrawing previous applications before drawing up a binding bid. However, this is time-consuming, especially under the conditions of a dynamic mortgage market.
We’ll compare mortgages for you
Don’t you have the time or the desire to find out what mortgage the bank will give you?
Have your experts check the creditworthiness of your mortgage before our bank reviews the registers as part of your application.