Insufficient mortgage amount

When arranging a mortgage, it sometimes happens that the bank does not lend you as much money as you need. What is the most common cause?

- the expert report was not accepted in full and the bank analyst reducedits value by a few thousand Euros

- your earnings are not sufficient for the required loan amount

Apart from the reasons mentioned above, there may be individual and other causes for a reduction in the required loan amount, but it can be generally solved with some co-operation between the bank, the buyer and the seller, and it is also very important to explain to the bank why it should provide the amount you demand.

If you have your own resources for additional financing, you do not have to worry about where to get the rest of the money. But what if you do not have your own resources?

If the value of the property was reduced, it is possible to reach the required loan amount by securing the loan with another property in favor of the bank. If you do not have the opportunity to secure the loan with another property and your income is sufficient, you can apply for a consumer loan to be able to pay the whole purchase price. These non-secured consumer loans generally have a more favorable interest rate than ordinary consumer loans.

In case of insufficient income, the situation can be solved by asking for a loan with someone else and it should be a person you know and you should trust each other (brother, sister, friend, family member, etc.). This co-debtor can be dropped out of the loan in the future.

If you are in the situation that you do not have the opportunity to secure the loan with another property, your income is lower than needed and you do not know anyone to take a loan from, it is probably not the best time to get the mortgage. I would recommend you not to take out a mortgage until at least one factor changes.