Mortgage lending

Mortgage lending is a long – term loan provided by a legal entity or individual banks secured by real estate: land, industrial and residential buildings, premises, structures[1]. The most common use case of a mortgage in Russia is buying a natural person apartment on credit. Laid down as a rule, newly purchased housing, although it is possible to lay and already owned an apartment[2]. Note that the mortgage is a public pledge. When the real estate mortgage, the registration authorities of the deal, make appropriate entries on the fact that the property pledged. Any interested person may request a statement from the State register of rights to immovable property and transactions with it. In this statement, if the property is mortgaged, necessarily indicates that there is a charge: Deposit[3].Depending on the object credit: Suburban housing. This type of loan has a complex procedural execution of the contract, as in the document of sale featured not one, but two different objects right – the building itself and the land on which it is located [4]. The initial contribution is higher than with the other two types of mortgages. Apartments on the primary market (new buildings and dwellings under construction). Feature: the interest on the loan, tends to be higher than in the secondary market. While the maximum lending period below. The main reason – the big risks, the possibility of bankruptcy of the developer, the fraud, the likelihood of “protracted” [5]. One of the key moments – ownership. If the borrower it is, then the loan will likely be cheaper. Another important aspect is the stage of construction. Housing on the secondary market. Feature: the most common type of mortgage loan. When working on the secondary housing mortgage banks may consider not only formal but also “grey” income [6]. Office space or manufacturing facilities – loan to acquire commercial real estate. Feature: mainly designed for small and medium businesses, the loan period is considerably less, however, the stakes are much higher. [7]. Buying an apartment with the help of a mortgage, a person can become the owner of the home. However, his rights as owner are limited because this space is the key. The debtor has the right to register their family members, and bequeath. But you should remember that the heir will not only get the square footage, but your obligations. The permission of the lender/owner of the mortgage loan is necessary in that case: it is planned to issue permanent registration are not family members, there is a desire to make alterations, the borrowers propose to take the house rent, sell or exchange it.