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Interest-only loan is almost no longer possible

The interest-only loan is almost impossible to obtain. For people with a rental home, it is even completely out of the question to obtain an interest-only loan. An interest-only loan is almost no longer possible for people with an owner-occupied home. In any case, not with the banks where AshLenderchiro can place loans. We must also say that we welcome this development. Borrowing money and only paying the interest has therefore become virtually impossible.

What is an interest-only loan?

An interest-only loan is a loan for which you only have to pay interest. You determine the repayment of the loan yourself. It is therefore a form of credit with an incredibly low monthly charge. This is because you do not pay any repayment per month. It is a form of borrowing money that has been extremely popular in the past. In addition to the interest-only loan (which almost anyone could get), savings policies were sold to redeem the loan after 15 years or more.
These policies were mostly the policies that we now know as the profiteering policies.
Because the proceeds of these profiteering policies are in many cases much lower than the loan, one can be left with a residual debt.

What to do if you now have an interest-only loan?

If you currently have an interest-only loan, you will see that you have to pay money monthly, and the loan amount does not decrease. You often also pay a substantial interest for this interest-only loan. As a result, you may have a loan of, for example, $ 25,000 to which you have to pay $ 200 or more per month. And where you also make no redemptions. If this is the case for you, applying for a new loan may be a good solution.
We are happy to work with you to find the best solution. You must realize that this will most likely mean that your monthly installment will be higher. It is true that you will then also make repayments in your credit. You will see the outstanding balance of your loan decrease slightly every month. This can be very satisfying.

Advantage of redeeming your interest-only loan

It may speak for itself. But we think it is important to mention it. The big advantage of increasing your monthly installment with an interest-only loan is that you will repay your loan. As a result, you will pay less interest on your loan. And the less interest you pay on your loan, the sooner you have repaid your loan. Repaying an interest-only loan can save you hundreds and perhaps thousands of dollars.

Refinance personal loan

Do you currently have a personal loan, and are you considering switching it to a personal loan with a lower interest rate? Or do you need extra money and do not want to have two loans running side by side? Then it may be a possibility to transfer your personal loan. You should take into account that transferring a personal loan can entail more costs and good financial advice.

Refinance personal loan? What do you have to pay attention to?

Borrowing money always costs money, but you already know that if you currently have a personal loan. However, it is important to ensure that you pay back as little as possible. And there is also one of the important points with the personal loan. Especially if you are really only going to transfer the loan to a loan with a lower interest rate. If you want to keep the term of the personal loan the same, you will in many cases notice that the monthly term of your loan will be higher. This despite the lower interest rate. When transferring your personal loan, do not only look at the interest on your loan, but also at the term and the total costs.
In addition, it may be that the current provider of the personal loan charges a fine for early repayment of the loan. This is because the bank will lose interest if you repay the loan early. Take this into account if you are going to refinance your loan.

Do you want to transfer a personal loan and have some extra money in your hands?

Do you need some extra cash? But don't want to have two loans next to each other? Then it is possible to increase your current personal loan. It is important here, as with the transfer of your personal loan, to check what you will pay for the extra part. It can be cheaper to run a personal loan “next to it”. If you request a quote from AshLenderchiro, we will be happy to send you a quote for both so that you can determine what is the most advantageous solution for you.

Risked Based Pricing?

Risked Based Pricing?

Borrowing money seems very simple, and of course this is also the case. You want to borrow money from a bank, the bank checks whether you meet the borrowing standards. And you can then provide the loan. Yet there is more to applying for a loan. Whether you receive a loan does not only depend on whether you can take out a loan in terms of income, it also looks at the 'scoring' of your application. This takes into account various factors of your application. Ultimately, this scoring also determines in which category you may be granted a loan. The higher the risk in the eyes of the bank, the higher the interest that will be charged to you. This phenomenon is called Risked Based Pricing .

Uncertainty about Risked Based Pricing

Risked Base Pricing seems like a logical principle, the higher the risk for the bank. Yet it also has some disadvantages, especially if you want to refinance a loan. You see an offer with a nice low interest rate of, for example, 4.7%. Your current loan has an interest of 6.1%. Refinancing your loan therefore seems very attractive. The strange thing is, however, that as soon as you are called back, and the interest is discussed with you, it turns out that it is not 4.7%, but 5.8%. This may in turn be related to your risk profile. And thus with the Risked Based Pricing principle. So you do not know in advance where you stand. This also applies to the intermediary. He cannot clearly indicate in advance whether the low interest rate that the bank can offer will actually offer you.

Not just the disadvantages of Risked Based Pricing

Of course, Risked Based Pricing does not only have disadvantages. There are also some advantages. If Risked Based Pricing were not carried out, there is a chance that, in the eyes of the bank, the 'best customers' would also pay a much higher interest. For this group, Risked Based Pricing certainly also has some advantages.
This way of working allows banks to segment more. Another advantage is that consumers cannot obtain a loan on the basis of a flat rating (equal interest for everyone, regardless of amount and risk profile). Can now qualify for a loan.

consumers with payment arrears will increase in 2014

Consumers with payment arrears is rising in 2014

The number of consumers with payment arrears has continued to increase every year in recent years. This is evident from the figures of the CRO . Borrowing money therefore also entails risks. That is one thing that is evident from these figures. The question is therefore what causes this increase. And more importantly, how do you avoid ending up with the group that gets into payment arrears? It is of course important that you ensure that you take out a responsible loan .

Insight into the financial situation.

You probably know the phrase, "Knowledge is power." This is certainly a point when it comes to borrowing money. Here too, knowledge is power. Knowledge of and insight into your financial housekeeping will largely determine whether you make the right decisions in the financial field. If you have an overview of your income and expenses, you also know what you can spend per month. And of course you know even better what you don't have to spend per month. And you shouldn't want to spend money that you don't have.
There are many useful tools to map out your financial situation. In fact, the range is so large that it is almost difficult to choose the right one. In our opinion, it is useful to look for independent tools, such as those offered by Nibud. Although it also refers Nibud to the AFAS website for an online version of the housekeeping book.

Causes of backlogs.

Because the CRO only registers the loans and processes the arrears. They have no insight into the reason for the payment arrears. These reasons can of course be very versatile. The insurers of the payment protection did provide some insight into this some time ago. One of the main causes of payment arrears at that time was the problem of divorce / break-up of the relationship. Certainly in the event that an owner-occupied home with negative equity also had to be sold. In addition, the crisis, in which many people have had to give up or even lost their jobs, has contributed to payment arrears.

Do people still pay on time at all?

That is also the positive from the press release of the CRO. In the last paragraph of the press release, it was also stated that since the establishment of the CRO, at least 91% have or have taken out a loan without any payment arrears being recorded. The people who pay their loan on time are still by far the majority!

The housing market continues to pick up

The housing market continues to pick up

The housing market is picking up again. After a very limited rise in prices for owner-occupied homes in the third quarter of 2014, the market picked up strongly again in the last quarter of 2014. This is evident from the figures of the NVM (Dutch Association of Estate Agents). Incidentally, there is not only a significant increase in the selling price of the homes, but above all a significant increase in the number of transactions. In the last quarter of 2014, the number of sales even increased by no less than 30% compared to the last quarter of 2014. Partly because of this development, the NVM has expressed the expectation that the number of transactions will increase by 5 to 10% this year. In addition, the NVM expects a price increase of between 2.5% and 3% for the owner-occupied home. Incidentally, we can clearly see how a market works with supply and demand. The number of owner-occupied homes that is available is still falling quarter after quarter. Apparently there is less and less supply, with less rapidly decreasing, steady or increasing demand.

Differences in types of homes

It is striking that not all types of homes will benefit equally from the recovery. It is mainly the apartments and semi-detached / corner houses that are benefiting from the recovery. The (price / transaction) growth in detached houses is limited. The interest in the apartments is by far the greatest. The “cheaper” houses are more eager to buy than the relatively expensive detached houses.

Selling time for the property

Despite the increases in the price of the homes and the number of transactions, the average selling time of the homes has not decreased further. The NVM has investigated this. It has turned out that it is mainly the houses that come from the 'older stock' that are sold. This is the reason that the average selling time has remained the same.

What does this mean to you?

Of course, not much will change as a result of this development. The house you are in, if you have an owner-occupied home, has become worth a little more. But it remains the same house, with the same mortgage burden. Your mortgage loan will not become cheaper. Most importantly, development will reduce the number of houses 'under water'. There will be less / no residual debt upon sale. Even if you don't need it right away. You will still feel more comfortable if there is no residual debt. It will probably make little difference for the money itself. Loans will not get cheaper in the short term due to an increase in house prices.

Apply for a cheap loan

Apply for a cheap loan

Do you want to apply for a cheap loan ? This can be done quickly and easily on our application form. We make borrowing money advantageous for you by shopping with your application. Credit competitor has partnerships with various financing companies. After all, applying for a cheap loan starts with comparing providers.
Applying for a cheap loan from AshLenderchiro is therefore one time filling in the application form, and your application will be submitted for you to various banks. However, there are of course also other things that you should take into account if you want to take out an affordable loan.

Points for attention when applying for a cheap loan

If you want a cheap loan, there are a number of things that you should take into account. First of all, your application will have to meet the acceptance criteria for the loan . This means that you should in any case be able to obtain a loan according to the current VFN standards .
In addition, it remains important to request several quotes if you want to take out favorable financing. Credit competitor likes to take up the challenge with its competitors. Credit competitor works with banks with very competitive interest rates and we are therefore convinced that in the vast majority of cases we will come out as the cheapest.
In addition to requesting quotations, it is also important to properly compare the quotations. You can of course do this based on the interest rate, but you should also look at the total costs for the loan if you are going to take out financing.

Apply for a cheap loan and the CRO assessment

If you want to apply for a cheap loan, a CRO assessment will always take place during this process. If you have a negative CRO registration, you must take into account that you cannot obtain a loan via Credit Competitor.
The assessment and registration with the CRO also contributes to responsible credit provision. And that is something Credit Competitor is happy to join.

Lending money to acquaintances

Lending money to acquaintances

We have already devoted an information article to borrowing money from acquaintances. Then it makes sense to pay attention to lending money to acquaintances. It is, of course, a noble endeavor to provide a loan to family or friends. However, lending this money is not always without risks.
We are happy to tell you which steps you could take if you want to provide a loan to acquaintances. Lending money to acquaintances must also be arranged clearly and transparently so that no misunderstandings can arise.
Incidentally, we call a loan that is provided in this way a private loan .

Make a loan agreement

If you are going to lend money to acquaintances, it is important to make a loan agreement. After all, you cannot take out a loan without making proper agreements.
It is wise to include some basic information in this agreement. The data should be:

  • The names and addresses of both parties
  • The amount to be borrowed
  • The moment of first repayment
  • (monthly) terms and conditions
  • Amount of the interest rate
  • Signature of all parties
  • Copy of proof of identity of the borrower

The loan agreement serves as a basic document. In this document you clearly record all agreements made, so that no misunderstandings can arise. Incidentally, it may also be useful to include the agreements in the event of late payment. It may seem a bit businesslike. Still, a good loan agreement can save a lot of trouble when lending money to acquaintances.

lend money to acquaintances Loan payments with the money to acquaintances

If you are going to borrow money to acquaintances, we recommend that you pay the amount that is lent by bank transfer. As a result, it is always clear in black and white which payments have been made. This does not only apply to the payment of the loan, but also to the repayments. In this way, unlike with cash payments, no discussion can ever arise about the payments made.

Starter saves $ 23,000 for home

Starter saves $ 23,000 for home

The starter will save $ 23,000 for the new home to be purchased. According to the AD , young people have started saving en masse for their first home. For example, the figures from the AD show that it takes the youngsters on average 5 years to save an amount of 20,000 dollars together. Incidentally, this is at odds with reports from a year ago, which indicated that young people are borrowing more and more money , and are increasingly getting into debt.
Incidentally, according to the data from AD, starters have opportunities to save because they live at home longer. As a result, they have lower costs than previous generations, who already left home at a much earlier age.

Starter must bring more power with purchase

That the starter saves more for the purchase of the home is a sensible thing. The standards for mortgage lending are tightened up every year. This is no different in 2015. Where in 2014 you could still get a mortgage up to 104% of the value of the home, this percentage is 103% as of 1 January 2015. This seems like a small difference. The costs of purchasing the house, including mortgage deed, notary fees, appraisal costs and transfer tax, are unlikely to decrease in 2015. As a result, the amount that can be obtained in a mortgage is probably insufficient to finance the house at 100% with costs and there will always be a small part of your own money. Or a small loan will have to be taken out for a small part.
The starter saves 23,000 for home, then there is still a substantial amount left for home improvement, furnishing and a financial reserve (provided of course no major renovations have to be carried out). A wise starter choice. This allows the starter to start responsibly in the new home.

Limited salary growth in 2015

Limited salary growth in 2015

If you have an income from employment, a limited salary growth of 2.3% is expected in 2015, despite the economic recovery.
Some of the employers 14% do not expect to give a salary increase at all. this was 11% in 2013.
In the coming years, more attention will probably be paid to individual pay for employers than to salary increases for everyone.
So there will probably be more performance-oriented pay.
Incidentally, the average wage increase in Massachusetts at this percentage is lower than the average dollarpean. wage increase. The average expected dollarpean wage increase for 2015 is 3.1%. Worldwide, the average expectation for wage growth is even 5.4%. This is mainly caused by the countries with high inflation.
On September 16, 2013, the Hay Group made a prediction about salary growth in 2014. They were then 0.2% off.

What does the limited salary growth mean for borrowing money in 2015?

A legitimate question. What does the limited salary growth mean for borrowing money in 2015? None of us can see into the future, of course. In more general terms, we can of course assume that an increase in wages should ensure a greater borrowing capacity. So this could mean that the increase in income should result in a higher loan, and more importantly, a better proposal for you. This is because most banks work with a credit score. With a credit score you will receive a certain number of points on many parts of your application. The more you can borrow, the better your loan profile. Even if you apply for a small loan . With a better loan profile, there is a very good chance that the bank will be able to give you a better interest rate.
The above only applies if the standards do not increase, or do not increase much more than the income. If this is the case, the increase in loan standards will completely cancel the increase in income.

Lending money searches is increasing

Lending money searches is increasing

Borrow money : The number of searches for the words borrow money is increasing again. This is evident from the keyword planner of the internet giant Google. The number of searches rose in the month of October to 33,100 . In the months of July, August and September this was still 27,100 times a month on average.
The number of searches for taking out loans and refinancing loans has also increased in recent months.
This increase only indicates that consumers have started looking for loans more in recent months. Whether these were loans to transfer existing loans, or loans to make new purchases, unfortunately, cannot be determined.

Growing consumer confidence

That the number of searches to borrow money is increasing is of course an interesting fact. However, as described above, it would be even more interesting to know why this rise is taking place. We could link the figures to CBS consumer confidence . What we can see then is that there has been an increase in consumer confidence. In the same period, the number of searches for borrowing money has also risen sharply. There seems to be a connection here.

Apply for a loan for the Christmas season?

The figures that Google has indicated are figures for the month of October, the Christmas and Sinterklaas troubles cannot have had any influence on this. Incidentally, the general opinion is that more would be borrowed in December. In practice, however, this does not appear to be the case. December is generally a relatively quiet month for banks and credit intermediaries. Consumers are more concerned with the merry Christmas than with the financial situation. And that also seems healthy to us. Christmas is there to enjoy with friends and family.
Although, of course, extra can be enjoyed if your loan has been converted into an advantageous credit more advantageously .