What counts as collateral for lenders?

Hello everyone,

we are currently planning our house construction and have already had an initial consultation with a credit broker. What we have not yet discussed in detail is the topic of collateral. What can one offer a lender as collateral?

The background of my question is whether it is worthwhile to sell things in order to get a better interest rate. Specifically, items that are difficult to value, such as coin or stamp collections, share portfolios, classic cars, jewelry, etc., interest me here. These could be appraised at the time of the loan granting, but if the collateral really has to be seized, of course they could have a different value then. Since some of these items are heirlooms, I would find it difficult to part with them. Therefore, I would of course prefer if the current value is recognized. On the other hand, I don't see why I should accept a significantly worse interest rate if the value is not accepted as collateral. Since in our case we are talking about a mid five-figure sum, this would certainly affect the interest rate. Presumably, we will have to calculate this based on a concrete offer. For now, I would just be interested in the general situation.

Thank you in advance for your feedback.

Kind regards from a 30°C warm attic apartment...

Specifically things that need to be valued differently, such as coin or stamp collections, stock portfolios, classic cars, jewelry, etc., would interest me here.

A colorful assortment of heirlooms...
Is everything really included or do you want an assessment for all possible scenarios?
Especially with stock portfolios, your heart probably isn’t attached.
For movable things like the others you mentioned, the bank will probably recognize little to no value as collateral. You could crash the classic car into a wall tomorrow.
With jewelry, etc., the bank can’t register itself as the primary creditor in a land registry, vehicle registration document, or anything like that. You can sell it anytime without the bank noticing.
So no security. Unless you deposit it at the bank.
But unless it’s the Crown Jewels of England, hardly any bank would do that...

No colorful bouquet of heirlooms... Partly inherited, but you can also get attached to things you have earned yourself.

do you want an assessment of all possible constellations now?

Of course not. The topic of vintage cars is understood, I could have come up with that myself... Jewelry etc. could theoretically be sold in an emergency to at least temporarily ensure the repayment. That's what I was actually getting at. Does a bank have to register somewhere as the main creditor, or does my approach with selling in an emergency also help?

You can really try the classic car and deposit the [document]. I think it depends a lot on the value whether the bank is interested.

There is the well-known saying "Only cash is real." Besides the house, there are surrender values from life insurance or a portfolio (although very high discounts are applied to the portfolio) or account balances. The rest has for the bank the value of today's BILD = at most amusement. This also applies to the classic car (perhaps an exception being a gullwing SL, Ferrari 250GT, or Jaguar D-Type).

Convert your stamp collection to cash immediately. It is a dying hobby. Be glad if you still get 50€ for it. You can get stacks of albums on eBay for next to nothing. Look at the prices.

For jewelry, first set the pure material value. Gold is currently at an all-time high. Do not set the purchase price!

Classic cars might work. What kind is it? What is the value?

Da es sich in unserem Fall um einen mittlere 5-stellige Summe handelt, würde das am Zinssatz sicher was ausmachen.

With all security discounts, you will be recognized with luck a low five-figure sum. I guess, however, that the selection of banks will be strongly limited and it might not be worth it.

Get rid of what is unnecessary and just turn it into cash.