Language of housing loans exchanged by kids - what is the solvency analysis

When entering into a credit agreement, the information provided to the consumer should be a little clearer and easier to understand in order to avoid litigation and increase credibility.

 

Thus, the idealist / news in partnership with Deco, intends to uncomplicate or decode some of the language used by credit institutions when giving a loan, in order to keep you more informed and relaxed at the time H.

 

Solvency Analysis - after all, what is it?

 

If you are going to ask for or reinforce a loan and particularly for housing, you should assess whether you have the ability to repay it.

Still, the bank or the financial institution that will grant the mortgage or mortgage loan also has the duty to assess whether the client will have the financial capacity to fulfill the commitment that will result from the credit agreement. This is the "analysis (or evaluation) of the debtor's creditworthiness".

 

This evaluation must be carried out before the granting of credit and be duly substantiated, based on a set of factors and information that may be requested from the consumer.

 

Relevant factors in this analysis:

The age, financial situation, income, regular expenses of the consumer.

 

The bank will also assess credit liabilities and their weight in consumer income, namely by consulting databases such as the Credit Responsibilities Map of the Central Bank of Portugal's Credit Responsibilities, provided that the to do with the protection of personal data.

 

The difference between the value of the property and the amount of the requested loan will not be decisive factor, except for credit for construction or works.

An eventual pessimistic scenario with a possible negative impact on the consumer's ability to comply, such as a possible fall in income, an increase in expenses or an interest rate, if the credit is variable or mixed rate, should also be evaluated.

 

Writing 05 June 2019

Source: Idealista News