Refinancing with your property as collateral

What is the application process for refinancing with property as collateral? 

To start the process of refinancing with property as collateral, you must first complete our application form. In the application, you must fill in some information about existing debt and income, so it may be a good idea to get an overview of your current debt situation and creditors before you start the application. It will then be easier and faster to complete the application for refinancing with property as collateral.
 
Once you have submitted the application for refinancing, we need you to send in documentation. You can submit the documentation via email or via the receipt page when the application has been submitted. We require the following documentation: A copy of your last 3 pay slips, a tax return for 2019, and a printout from the debt register that shows an overview of your unsecured debt to be able to help you with refinancing.

After we have received the documentation from you, one of our advisers will start processing your application for refinancing with property as collateral. The adviser will soon contact you to review the information you have provided in the application and which solution will be best for your situation.

The adviser will then present your application for refinancing to the banks, and negotiate the best possible terms for you. The advisor will update you during this process and finally present a loan offer for refinancing to you if this is possible in your situation. Once the loan documents have been signed, the bank will pay off your existing loans, so that you can get rid of expensive loans, negative payment entries in your credit report and debt collection cases. Then you will just have one bill to pay - and better control of your personal finances with refinancing.

What interest rate will I have when refinancing with property as collateral? 

Norsk Refinansiering collaborates with several different banks that offer different interest rates for refinancing.
 
When refinancing with property as collateral, the interest rate is set individually in each case, based on a comprehensive, discretionary assessment of the applicant’s and, if applicable, co-applicant's income, debts, the object provided as collateral and so on. It is thus difficult to state specifically the interest rate you will pay on your loan without more information about you as the applicant. If you want to know the interest rate you will pay on your loan, we therefore recommend that you submit an application for refinancing.
 
Submitting an application for refinancing with property as collateral is non-binding and completely free of charge for you as an applicant, and you can decline a potential offer or end the process of refinancing at any time. We negotiate with the banks about the best loan terms for you, so that you do not have to apply multiple times and at the same time get the lowest possible interest rate.
 

What are the benefits of refinancing with property as collateral? 

There are several benefits associated with refinancing with property as collateral. First, you get better control of your personal finances. Many people are in a situation where they have several credit cards and small personal loans, all of which have their own bill and monthly fee to pay. This means that you have to register several payments in your online bank, and often calculate how much you can afford to pay each month. When refinancing with property as collateral, all these small loans are combined into one large loan, with one monthly bill. It is then easier to keep track of your fixed monthly expenses, and possibly if you can afford to pay more some months. It is also easier to keep track of when the loan has been repaid in full and you can thus plan your finances better.
 
Furthermore, you will benefit from reduced costs associated with the loan when refinancing with property as collateral. When you have one loan instead of several small ones, you will only get one monthly fee to deal with. In addition, the interest rate will in most cases be considerably lower. The average interest rate on a credit card where you pay the minimum amount each month is 22-25%. The average interest rate on a personal loan is 15%. By reducing the interest rate to 7-8% for the loan, you save significant sums each month.
 
In addition, for some people, refinancing with property as collateral may make it possible to avoid a situation where their home is forcibly sold because they are now able to meet their creditors’ demands. Refinancing with property as collateral can also lead to deletion of negative payment entries in your credit report and debt collection cases.

 

Who can apply for refinancing with property as collateral ?

To be able to apply for refinancing with property as collateral, you must be a Norwegian citizen and have more than NOK 150,000 in unsecured debt. You must also have a fixed income. In addition, you must be able to provide your own or someone else's home as collateral for the loan.

You can apply for refinancing with property as collateral even if you have debt collection cases in progress and negative payment entries in your credit report. We work with banks that have specialist expertise in refinancing in cases where people are in a very difficult financial situation. By refinancing with property as collateral, you can have negative payment entries in your credit report and debt collection cases deleted. In addition, monthly expenses in the form of fees and interest will be reduced by refinancing. Thus, in most cases your financial situation recovers so that you can keep your head over water, avoid forced sales, and in the long run move the loan back to an ordinary bank.
 

How do I apply for refinancing with property as collateral? 

If you have a fixed income, more than NOK 150,000 in unsecured debt and can provide property as collateral, you can apply for refinancing with property as collateral by filling out our application form. You have to fill in some information about existing debt and income, so it may be a good idea to get an overview of your current debt situation and creditors before you start the application.
 
Once the application for refinancing has been submitted and we have received the requested documentation, the processing of your application for refinancing will begin. An adviser will contact you if we need more information and then negotiations with the banks will begin, to get the best loan agreement for you. The refinancing process is non-binding and free of charge.
 

How much does refinancing with property as collateral cost?

It is the banks that determine the interest rates for refinancing with property as collateral. The interest rate for refinancing is set individually in each case and is based on a discretionary assessment of several factors. These banks specialize in helping people with a difficult financial situation, often with negative payment entries in their credit report and/or who have been subject to debt collection procedures, and who might otherwise not be able to refinance through an ordinary bank. The average interest rate for such special loans is approximately 7%. The interest rates for refinancing are thus somewhat higher than compared with an ordinary mortgage. However, it is worth noting that the interest rate on credit cards is on average 23-25%, and the interest rate on consumer loans is on average 15% (figures taken from the Debt Register). By consolidating everything in a refinancing loan with an average interest rate of 7%, you save a considerable amount each month.

Refinancing with property as collateral through us is not intended to be a long-term, ordinary mortgage, but a temporary solution to help people sort out negative payment entries in their credit report and satisfy creditors, so that they can eventually move the loan back to an ordinary bank with a lower interest rate. In addition to the fact that this type of refinancing loan is more short-term and therefore less profitable for the bank, the case processing in these cases is usually quite demanding and the banks have to go further than normal to find a solution for refinancing. In addition, there is a somewhat higher risk associated with the loans. Overall, these factors mean that the interest rate for refinancing is set somewhat higher.

Hva er forskjellen på refinansiering og forbrukslån?

In the case of a personal loan, the borrower is paid the loan amount directly to their account and can use the money freely for whatever the borrower wants, whether it be refurbishment, a holiday, business expenses or the like. With refinancing with property as collateral, the loan amount will be used to repay existing credit facilities and small loans, and the bank will pay the loan amount directly to the banks you have your loans with today. Refinancing of loans takes place without you as a borrower having to do anything. This makes the process of refinancing safe for you as an applicant, because you can safely ensure that the bank cleans things up and that everything goes smoothly.

 

When your refinancing with property as collateral is paid out, the bank you get a loan from settles the outstanding claims and debt collection cases directly with the creditors without you having to do anything. When the outstanding payments that have led to a negative payment entry being registered in your name have been paid off by refinancing, the creditor sends a cancellation message to the credit information company. After approximately 2-3 days, the negative payment entries are deleted from you in the systems by refinancing with property as collateral.

You will receive a repayment plan from the bank and a bill for your first monthly repayment on the refinancing loan. You must then register the bill payment in your online bank with the correct KID and account number, and feel free to create an AvtaleGiro and/or eFaktura agreement if the bank offers it. Repayments will then be made automatically in the future.
 

Firstly, refinancing with property as collateral will give you a better overview of your personal finances. When refinancing with property as collateral, you will have one large loan instead of several small loans, and thus have only one bill to pay each month. With refinancing, it is therefore easier to control your finances and easier to plan how much you have left over to spend on other things each month. Refinancing with property as collateral allows you to make more sensible financial decisions. When you have a better overview of specific expenses each month when refinancing, it is also easier for you to assess whether you may be able to afford to pay off more of your loan some months - refinancing gives you back control.

In addition, refinancing with property as collateral will allow you to get rid of debt collection cases and have negative payment entries in your credit report deleted. You thus get the freedom to use your finances back by refinancing. Negative payment entries can affect, for example, applications for services such as electricity, renting a home, etc.

In addition, debt refinancing will normally mean lower monthly costs. Ordinarily, personal loans and credit cards have a significantly higher interest rate compared with loans secured on property, and this interest rate difference will lead to a noticeable reduction in the monthly costs of refinancing with property as collateral. In addition, there are fewer fixed fees when applying for refinancing with property as collateral, which in turn reduces costs.