The investments mortgages are characterised by a large number of liberties. The amortization of the debt is not done by means of an investment account instead of a life insurance. Although investing means running a risk, many people opt for this mortgage form.

The interest-only mortgage
As the name says, there is no amortization, only interest is being paid. This mortgage form is often chosen by people who find an insurance or amortization not necessary because the value of their house is considered to be sufficient and because they opt for the lowest monthly charges. Often an interest-only mortgage is being combined with another mortgage form.

Other forms
When listing other forms, the credit mortgage cannot be missing. The essence of this mortgage form is that is allows you to retrieve and amortize freely. As soon money is retrieved for consumer expenditures, the mortgage interest is no longer deductible. Last but not least: the mixed mortgage. This form is completely tuned to your personal wishes and possibilities. With it you can us the advantages of the other mortgage forms mentioned before.

Credit mortgages
The credit mortgage is frequently concluded to widen one’s credit space (temporarily). For example for a renovation, a consumer expenditure or simply as a reserve to be on the safe side. Sometimes elderly people use this form to dispose of the capital that is in fact locked in their property.

The characteristics
• You have a standing (ongoing) credit with mortgage security by which the monthly chsarges are lower than a regular consumer credit;
• You can retrieve and deposit in a flexible way;
• It is a good alternative for consumer credits;
• Sometimes it allows you to borrow more than the value of your house;
• The mortgage interest is only tax deductible if the money is used for the purchase, improvement or maintenance of your house.

Flexibility
This mortgage form allows you a lot of freedom. There is no compulsory amortizations schedule to keep. You are free to retrieve or to deposit. If the value of the house is high enough, you can even credit the chargeable interest to a certain height, but then you beware of the fiscal consequences. Some mortgage providers let you conclude a credit mortgage which is higher than the market value of your house. In such a case you often need to conclude a capital insurance with which the death risk is covered and you save for the amortization of (a part of) the debt.

Limited deduction of the mortgage interest
Since 2001 the interest paid over consumer credits cannot be deducted fiscally. If you use the credit space of your credit mortgage for consumer purposes you thus cannot use the mortgage interest relief facility. It is only possible when you use the credit space for the purchase of a house or for the improvement or maintenance of a house. So know the possibilities and limits well, before you conclude a mortgage like this. Let our independent advisers inform you extensively and make an appointment with one of them.