The overdue repayment of the mortgage is the timely return of the principal and interest on the loan to the lending institution by the borrower at the time agreed by the contract. Overpayment of mortgages has a series of negative consequences for both borrowers and lending institutions. From an economic, credit and legal point of view, the present paper will analyse the consequences of late repayments of housing loans from several angles。

Consequences of overdue repayment of mortgages

First, the economic aspect is the most direct effect of the overdue repayment of housing loans. Once the repayment is overdue, the lending institution will begin to collect a penalty, as contracted, which will increase the repayment burden on the borrower. If repayments are long overdue, it is also possible for the lending institution to stop extending loans and to seriously even cancel existing loans. As a result, borrowers will not be able to continue to purchase or invest in other properties and will be in financial distress。

Second, credit is also one of the important consequences of late repayment of housing loans. Overpayment directly affects the personal credit records of borrowers. Credit institutions will submit late records to the call institutions, which will leave a stain on individual credit reports. Credit reports are a person ' s credit record file, which will be used by other lending and commercial institutions to assess the borrower ' s credit position. Overpayment would significantly reduce borrowers ' credit ratings, affecting not only borrowing capacity but also other financial and commercial transactions。

Moreover, from a legal point of view, there is a certain legal risk of overpayment of mortgages. Under the relevant provisions of our contract law, the borrower would be in breach of the contract and the lending institution would be entitled to take measures of recovery. This may include litigation for the repayment of arrears by borrowers, payment of fines and other legal liabilities. If the court decides that the borrower ' s recovery has been successful, the borrower will face legal consequences such as financial compensation and reputational damage。

In the light of the above, the economic, credit and legal consequences of the overpayment of housing loans. Economically, borrowers would be at risk of increased interest and limited ability to buy and invest. On credit, late records leave a credit stain on individuals ' credit ratings and credit capacity. Legally, borrowers may face legal risks such as litigation and financial compensation。