Restart loan
A restart loan can be a solution for you if you have payment reminders, debt collection or other financial challenges and need to clean up to get a fresh start. Here we explain what a restart loan is, who it is suitable for and what requirements apply.
In a nutshell:
- Restart loans are used to collect debt and clear up payment problems
- Often relevant for payment reminders or debt collection
- Demand security in housing
- Can provide a better overview, lower costs and improved finances
What is an Omstart loan?
A restart loan is a form of refinancing used when your finances have become unmanageable, often due to payment remarks, debt collection or defaulted debt. The loan is used to settle existing claims so that you are left with a single debt and more manageable finances. The goal is not necessarily the lowest possible interest rate, but to gain control and start afresh.
→ You must be able to offer security for the loan in a property.
→ It doesn’t have to be a property you own.
Restart loan with a payment remark
Many people who apply for a restart loan have payment remarks, and this is often the reason why a restart loan is considered. Payment remarks do not have to be an obstacle, but the bank will make an overall assessment based on:
→ income and ability to pay
→ security in property
→ total debt ratio
→ the cause of the payment problems
A restart loan can be used to settle the claims that have led to payment remarks, so that these can be deleted when the debt is settled.
Who are Starter Loans suitable for?
Restart loans may be relevant if you:
has payment remarks
has several debt collection cases
have confusing and costly debt
have had temporary payment problems
have income, but lack structure in their finances
owns property (security requirements)
This is a solution for those who can pay for a new loan but need help clearing up their current debt.
Requirements to get an Omstartslån
In order to be granted a restart loan, there are usually requirements:
→ home as security (always)
→ stable or sufficient income
→ debt you are able to service after refinancing
→ tidy finances (not unsolvable debt)
Eiendomsfinans has worked with Omstartslån for many years. We work with all the leading banks on this type of loan. Feel free to contact us for more information and offers.
How does a Restart Loan work?
The process for a restart loan usually follows these steps:
1) Mapping of debt and debt collection cases
Full overview of existing claims and payment issues.
2) Assessment of safety in housing
Property value and available collateral are considered.
3) The bank assesses your ability to pay
Income and ability to service a new loan are assessed by the bank.
4) Existing requirements are met
Old debts and collections are deleted upon payment.
5) You are left with a new loan
Better structure and predictability with total debt.
Pros and cons of restart loans
A restart loan can give you a real opportunity to clean up your finances, but it’s also important to understand both the benefits and the risks.
Benefits:
one total bill
better financial overview
lower costs without debt collection and non-performing debt
Clean up your payment history
often the only solution for further financial rehabilitation
Disadvantages:
requires a mortgage on the property
can result in a longer repayment period
The interest rate and set-up fee are higher than for ordinary mortgages
risk of ending up in the same situation if you do not change your financial behavior
We can help you apply for a restart loan
Eiendomsfinans has worked with restart loans for many years.
We work with all the leading banks on this type of loan.
Feel free to contact us for more information and offers.
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.
FAQ - Frequently asked questions about restart loans
Can I get a restart loan with payment remarks?
Yes, this is often the very purpose of the loan, but each case is assessed individually.
Do I have to own a home to get a restart loan?
Since security in the home is necessary, but it does not have to be a home you own yourself. Real estate guarantors can be an alternative.
What's the difference between refinancing and a restart loan?
Restart loans are a more specialized form of refinancing, adapted to defaults and payment problems.
Can I get a restart loan without collateral?
Unfortunately, no. Security in property is a requirement, but it doesn’t necessarily have to be a property you own.
How much can I borrow in a restart loan?
Depends on property value, income and overall finances. Maximum loan is up to 90% of the value of the property.
How quickly can a restart loan be disbursed?
The time it takes varies, but often takes longer than ordinary loans. This is because all creditors must be contacted and there are often several loans to repay. You should expect between 5-10 working days.
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