A 300 thousand euro consolidation loan for the consolidation of bank debt is possible only in the form of a mortgage consolidation loan. A mortgage consolidation loan is a loan that is secured by a mortgage on the property.
On the portal you can familiarize yourself with the offer of consolidation loans. Using such a loan, you can pay off a lot of different other bank liabilities, such as: debit on your bank account, loans and cash loans, car loans, installments, account limits, credit card debt and more.
We distinguish between cash and mortgage consolidation loans. The most popular are of course cash, because usually do not require additional security. The maximum amount of such a loan is € 200,000, and the loan period does not exceed 10 years.
Below is a summary of cash consolidation loans.
Consolidation Loan 300 Thousand Euro Mortgage
A big advantage of choosing a mortgage consolidation loan is a long loan period, which reaches even 30 years, a high amount of consolidation (sometimes exceeding 200 thousand euro) and a much lower interest rate than in the case of a cash consolidation loan.
Credit consolidation reduces the monthly charges for settling liabilities. What is important, and often is not taken into account, that the purpose of a consolidation loan is to reduce the amount of loan installments paid. A consolidation loan will not make the cost of the loan smaller.
Consolidation means that the repayment period is extended (to lower the monthly installment), and thus the bank’s customer will pay a higher interest rate on the loan, and thus the cost of servicing the debt increases.
Nevertheless, lowering the monthly installments paid so far, eg by half, improves current financial liquidity. And additionally what many people do not realize: it also improves creditworthiness.
Banks can set different restrictions and requirements by granting a mortgage consolidation loan. The minimum amount of the loan is set (similarly as in the case of mortgage loans). As a rule, the lower limit is approximately € 20,000. The maximum amount is usually set at 70-90% of the value of the property, which is the collateral for the loan.
If you follow an opinion about banks, it is not the best way to choose a favorable loan. The best method is to compare loans and banks.