In older houses in particular, structural changes have to be made over the years, ranging from complete renovation. If you need a loan to renovate, you can rely on the state funding from Across Lender or contact one of the banking institutions that grant a loan even without an entry in the land register.
Higher loan amounts for renovation loans
Smaller purchases in particular can be financed best with an installment loan. With an installment loan, the lender, usually the bank, obtains information in advance about the borrower’s creditworthiness. With this measure, the bank wants to protect itself from a payment default that is particularly likely to have a bad credit rating.
However, if there are major renovation work on your home, the borrower has other options. In contrast to normal consumer loans, a loan for renovation, for example, can be applied for higher sums, since the borrowers also have home ownership in addition to a regular income. Unlike the consumer loan, a renovation loan is also subsidized by the state if certain conditions are met.
State funding through Across Lender
The Across Lender renovation loan is one of the cheapest offers. Anyone who makes an application generally receives the cheapest interest rate from Across Lender, which applies on the approval date, even if this has changed again after the application has been received. There is a good chance of a promise if you want to renovate your home in an energy-efficient way and apply for a loan to renovate it. The energy-efficient renovation measures include, among other things, the renewal of windows, thermal insulation of the roof and outer walls and the installation of ventilation systems. A disadvantage of a Across Lender renovation loan, however, is that the requirements are very strict and evidence must be provided within nine months.
In particular, this includes proof that Across Lender funds were used on time and in accordance with the program. Borrowers who apply for a renovation loan from Across Lender should therefore keep all invoices carefully and need the help of an expert to help with the renovation. With regard to the renovation, it must be demonstrated that the requirements set by Across Lender, for example in terms of energy efficiency, have been complied with. The loan is not granted directly by Across Lender, but is processed through a participating bank.
Renovation without entry in the land register
If you intend to renovate without entering a land register, it is currently very difficult on the market. Only a few banks that operate nationwide offer a renovation loan without a land register entry. According to a survey by the TV station n-tv, a banks agreed to process a modernization loan without securing the land register. The turbo loan from Fine Bank also belongs to the offers without land registry security.
Before taking out the loan, one should take into account the development of the effective interest rate. Some banking institutions disguise the actual level of the interest rate by processing the financing through a multi-credit. Basically, before taking a loan to renovate, it is best to get comprehensive advice from a financial expert and to weigh up options and risks that need to be considered when taking out a loan. These can vary depending on the individual situation.