Mort­ga­ge permissi­on wit­hout home purchase

Mort­ga­ge permissi­on wit­hout home purchase

Mort­ga­ge permissi­on wit­hout home purchase

The Housing and Construction Authority is authorized to grant a mortgage permit for a loan with priority over all HMS general loans, regardless of the purchase of an apartment, subject to certain conditions. 


The follow­ing conditi­ons must be met in or­der for a mort­ga­ge assumpti­on to be gran­ted: 
  • The total calculated amount of the balance of the loan/loans at the Housing and Construction Authority and with priority over other unpaid loans may not exceed the maximum lending limit at any given time.
  • The total calculated sums of the blance of the loan(s) at HMS and with priority other unpaid loans may not exceed 80% of the property's market value.
  • The assessment of applications for mortgage permission and their processing is otherwise carried out with the aim of ensuring equality and that decisions are in line with the interests of HMS and the rules of the HMS board.
 
The Hous­ing and Constructi­on Aut­ho­rity is aut­horized to grant mort­ga­ge permissi­on with pri­o­rity over all gener­al loans except the follow­ing:
  • Loans from the Workers' Construction Fund.
  • Loans for rental apartments or occupational renting.
  • Rural loans.
  • It is not permitted to subordinate to foreign currency loans.
  • It is not permitted to grant mortgage permission because of the refinancing of floating debt.
  • It is not permitted to subordinate to a mortgage which has been lent out (the same parties must be borrowers and registered property owners).
 
Accomp­any­ing docu­ments
  • If the combined amount of the new loan and HMS's older loans exceeds 80% of the rateable value of the apartment, a valuation of the relevant property is required.
  • If the request is made in connection with a purchase agreement, a real estate agent's valuation is not required. In that case you need to send a copy of the purchase agreement.
  • New/new loans : Photocopy of loan commitment or copy of bond.
  • Copy of credit rating.
  • Older loan: A printout of the loan balance from the debtor's computer system and a photocopy of the bond(s).
  • Information on the disposition of the loan/loans for which a mortgage permission is requested and which must be submitted to the ÍLS mortgage bond/mortgage bonds in mortgage order.

It is not necessary to submit a valuation if the combined calculated amount of the remaining loans (which should be moved to the back in the mortgage sequence) and the new loan fits within 80% of the property's real estate valuation. A fee is charged for the granting of mortgage permissions, according to the HMS tariff. The fee is added to the loan for which the mortgage permission is granted and will be collected on its next due date.

 

HMS is authorized to refuse to move in the order of mortgages if the default on the loans is such that a payment challenge has been sent out due to HMS's loans on the property in question.

Application for a mortgage permission without purchasing a home

Apply here

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