•   Wednesday, July 24, 2024

Pledged loans: key information

Loans against mortgages on houses or flats are products that clearly arouse growing interest among Polish customers. It should be added, however, that the growing interest in this type of loan products has so far not been accompanied by an increase in knowledge about the specificity of their operation.

According to the unanimous opinion of experts, it is the lack of reliable knowledge about the advantages of such solutions as real estate loans that continues to be the main factor causing the Polish consumer, despite growing interest in taking out a loan for a house or flat as a pledge, to still decide much less frequently than, for example, the Western consumer.

Pledged loans: key information

Real estate loans are considered by professionals to be one of the most attractive, if not the most attractive, forms of both bank and non-bank loans available today. At the same time, however, it is worth noting that in the so-called social perception of mortgaged loans for a house or flat, they are still considered to be a solution involving considerable risk. Perhaps the social perception of mortgaged loans is influenced by the fact that the formal inclusion of a house or flat in the loan agreement makes the prospect of a possible loss of real estate more tangible.

However, it is worth being aware of the fact that these are only misleading appearances. In reality, mortgages turn out to be for example the most effective and the safest way to get out of a spiral of debts. In the case of customers using loans on account of pledge, there are also less frequent problems with timely repayment of liabilities or falling into a worse financial situation when repaying a loan.

Of course, the described phenomena are by no means a coincidence. Indeed, real estate loans are characterised by much more favourable conditions than other available loan product variants. First of all, they have a much lower interest rate and, at the same time, the possibility of a significant extension of the repayment period. In practice, this means that it is possible to reduce the monthly instalment by as much as several dozen percent. In the case of home equity loans, the consumer may also borrow more than the standard types of loans.

Myths related to pledged loans

Probably, mortgages on real estate are very often perceived as risky solutions also because of the fairly large number of myths and stereotypes associated with these services. Customers often think that even a one-time problem with the payment of an instalment will result in the loss of the property: of course, it is not true. In fact, banks and lending companies have no interest in stripping their clients of their real estate: on the one hand, it negatively affects their reputation, and on the other hand, it is a process that is simply legally and formally complicated.

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