2. Generate penalty interest. For borrowers who fail to repay their mortgages on time, banks will punish them with penalty interest.
Consequences of seriously overdue mortgage loans
1, penalty interest
If the overdue time is not long, but there are many overdue times, it means that you are willing to repay, but you often forget or the funds are not in place. There should be a provision in the mortgage contract that the interest rate will rise after the deadline as a daily penalty interest. Every bank has different rules. For example, Citibank will charge 50% interest on the basis of the original interest rate. Please refer to the contract for details.
The loan application was rejected.
As mortgage loan is an important loan business, it will be shown in the credit report. Once overdue, it will leave a credit stain, but the impact of a few days overdue is not particularly great, as long as it is repaid in time. Some banks with strict risk control will directly reject your loan application and card application when they see that you are overdue, and it is difficult to handle credit business in a short period of time.
3. Increase the repayment pressure
If the mortgage is overdue, it will not only continue to bear the repayment obligation, but also impose additional fines. The amount of fines imposed by different banks is different, and most of them are 30%-50% higher than the original loan interest rate. If the overdue time exceeds 7 days and the arrears are not made up, a fine and a late payment fee shall be paid together.
Step 4 sue
In fact, it is often a few days overdue. As long as it is returned later, it will not be prosecuted. If the repayment is overdue for more than 3 months for a long time, the bank may bring a lawsuit against the borrower and demand the borrower to make compensation according to the terms signed in the loan contract and guarantee contract.