The cost of a kitchen is often so important that to redo it, owners resort to consumer credit. However, you should know that banks and credit institutions offer the possibility of including this amount in a mortgage in order to benefit from all the necessary budget thanks to a single loan. If you find yourself in this situation, here is everything you need to know about this type of project.
Real estate credit is financing intended to make a real estate acquisition, whether it is a purchase or a construction. However, it is not limited to financing an acquisition insofar as it can also be requested for renovation work provided that the amount requested is greater than 75,000 euros. On the other hand, it is also possible to take out a mortgage for a purchase of property and to include a works budget. It is rare to buy a property without having to carry out work afterwards. This can be renovation work, for finishing or for decoration. Taking into account the needs of borrowers, banks then offer suitable financing. Thus, the financing of a kitchen can be part of the work included in the mortgage.
To do this, there are a few conditions to be met, in particular, sufficient borrowing capacity. Indeed, by adding the cost of a kitchen to the loan, the total amount borrowed will be greater, which will affect the repayment terms. The monthly payments will for example be higher or the repayment period will be extended. Note that to have the possibility of including the cost of his kitchen in the mortgage, the borrower is required to provide proof of the work. This implies that the borrower will have to call on a professional kitchen designer who will be able to make an estimate. If, on the other hand, he intends to carry out the installation himself, he will be directed to the personal loan.
Whether you hire a professional kitchen designer or do the work yourself, you will always have the choice between integrating the cost of the kitchen into the mortgage or applying for a personal loan. The personal loan is the financing most often requested for this type of project, regardless of who is involved in the installation. It has the advantage of being more accessible and of granting a sum of up to 75,000 euros without the need for supporting documents. It should be noted, however, that the interest rate of such a loan is relatively high. Including the cost of the kitchen in the mortgage is more advantageous in terms of the rate, however, because it allows you to take advantage of a low rate for both projects. The only condition for doing this is to provide a precise estimate to the bank to enable it to add the necessary sum to the mortgage.
With the fall in real estate rates, many owners wish to finance their work by including the budget in an existing mortgage. Be aware that this is not possible since this operation must take place as soon as the mortgage loan application is made. The use of consumer credit therefore becomes mandatory. However, there is a solution that should allow you to reduce the rate:it is credit consolidation. This consists of combining the mortgage with a new consumer credit to benefit from a single contract. The repayment terms will then be reviewed to obtain a single rate, a readjusted monthly payment and a rescheduled repayment period.
