Building society savers: The combination of equity and building loan


In July 2015 alone, Agree banks provided more than 25 billion USD to private households for the construction loan.

An impressive number that emerges from the interest rate statistics of the Cream Bank.

Builders have probably put much larger sums into their own homes.

After all, families often bring equity capital. Part of the savings is likely to be in the home saver .

Hasn’t the building society contract been a thing of the past?
Where is far-sightedness needed from the client’s perspective?

Building society savers – credit and savings from a single source

Building society savers - credit and savings from a single source

At first glance, the building society contract looks somewhat antiquated and is getting on in years, given all the modern financing instruments.

However, there is a concept behind this that still applies in the 21st century when it comes to building loans. The home saver combines a comparatively low-interest loan with previous savings efforts.

The basic structure of the home saver is – despite the different products – similar. The savings phase begins after the home savings contract has been concluded.

As a client, regular payments are made to the contract – until the minimum balance is reached. When the allotment maturity is reached, the building society customer can not only use the saved credit. A building loan with an agreed interest rate is available for call.

Bausparer: It is now also available as a combination product

Bausparer: It is now also available as a combination product

The classic building society contract has one major disadvantage – the long saving phase. Five to seven years pass quickly here, which building society customers have to wait for capital. In the meantime, however, there are alternatives that rely on a connection between the home saver and an advance loan.

Here, the household closes a building society savers, but also takes out a bank loan – the advance financing. The latter immediately ensures liquidity. Generally sufficient as a maturity loan, only the interest payment to the bank flows during the term of the advance loan. The loan amount is replaced with the due service from the building society contract.

  • The latter is to be saved during the term of the advance financing. However, whether the combination of building society contract and advance loan really pays off does not depend so much on the monthly charges. Rather, it comes down to a detailed look at the combined lending rates. It often turns out that the total effective interest rate is borne by the borrower. Based on this situation, it is advisable to check all options at this point.

Can you buy a house with a loan repurchase?

The repurchase of credit is known to allow to renegotiate its rate and / or to gather several loans in one, it can also allow to buy a house, under certain conditions.

You can actually buy a house with a loan buyout, but the eligibility for this type of project depends on several factors, including the borrowing capacity of the household. A household in debt at almost 33% of its income may find a little financial margin by extending the repayment period with the repurchase of credit but this will probably not be enough to allow the addition of an amount dedicated to real estate financing. It is important that the household has a sufficient capacity to get into debt but also a remainder to live within the authorized limit, it is quite simply the sum which remains each month on the bank account after deduction of the regular charges.


Buying a house with a loan buy-back: it’s possible

You will understand, the debt capacity is the key word in this type of operation and an owner who already has a property will be easier to get an agreement because he can offer his main property as collateral, which a tenant cannot necessarily do so. Whether the borrower has consumer loans and / or real estate loans in progress, nothing prevents him from carrying out a loan repurchase simulation by adding the amount of his real estate project when entering the form.


Home loan with a buyout of consumer credit

Home loan with a buyout of consumer credit

Some households with only consumer loans are also interested in the project of grouping the credits into one and adding to the financing a home loan, which will be used to buy the house. In this case, two solutions are possible, a grouping of consumer credit which makes it possible to combine consumer loans with the subscription behind a mortgage. The second option is to use a credit repurchase including the consolidation of consumer loans and the addition of an amount dedicated to the financing of the property. The advantage of loan repurchase is to be able to adapt to the needs of the borrower and therefore consequently to his projects. The credit buyout simulation provides a quick and free initial overview of the feasibility for these types of financing.

You should know that this solution is generally requested by borrowers owners or SCI wishing to invest in real estate, the presence of a first property can in fact constitute a guarantee for the second, this is possible in the context of a buyout mortgage credit. We will calculate the amount to borrow based on the value of the first property, so this is called the mortgage ratio. It is necessary to use a mortgage buyout establishment to obtain this type of financing, here again simulation remains the best solution to compare the different proposals.

Building loan: tips on the loan terms

In the wake of the 2007 financial crisis, which went hand in hand with the Lehman bankruptcy, and the European sovereign debt crisis, borrowers became the winners. Financing – like the construction loan – has become significantly cheaper in recent years.

A fact that seems to blind some households. When it comes to building finance, contracts are simply signed that are not understood. The loan conditions are the binding set of rules for all those involved for years to come.

Loan Terms: The Guide to the Building Loan

Loan Terms: The Guide to the Building Loan

Basically, the loan conditions regulate all important aspects that play a role in mortgage lending. This includes:

  • Interest rates
  • Fixed interest rate
  • Repayment terms
  • Commitment interest, etc.

Why is it so important from a consumer perspective to deal with every aspect of financing in detail? Quite simply: In the terms of the building money, clauses and conditions can be hidden, which become a boomerang for the borrower when repayment begins.

  • A construction loan is raised, which includes 150,000 USD. Unfortunately, the builder did not get enough information about the special repayment. This is not provided for in the loan agreement. Another bank would have offered him five percent special repayment per year. The consequences are serious since the household regularly receives bonus payments from the employer.

A simple example that underlines the scope of the loan terms. What should be particularly important to you?

Which conditions are particularly important?

Which conditions are particularly important?

It is difficult to arrange the individual loan terms according to a list of priorities. The bottom line is that the overall package must always fit the individual framework.

But: Some points are almost always important. This includes the special repayment mentioned above.

Repayment and fixed interest rates also play a role together. How can this be explained?

The initial repayment determines how much of the loan the client will return to the bank in period X. The fixed interest rate as a framework for the duration of the validity of the interest rate can be used in low interest rates to pay off the loan on favorable terms, possibly even within the fixed term – if the initial repayment is correct.

Conclusion: The loan terms are extremely important for mortgage lending. Every household has to be clear about what they ultimately signed.

Loan for renovation.

If you want to renovate your apartment or house, you do not always have cash immediately. Depending on how extensive wallpapering and painting or laying new floors, such a general overhaul of the house and apartment can be quite expensive. A loan for a renovation can be obtained from a bank or privately under certain conditions.

Personal loan for renovation

Personal loan for renovation

If you want it to be quick, you can get the money you need for a renovation within the family or from a friend. Such personal loans are often free of interest and a Credit Bureau entry is also pleasantly omitted. The repayment can be regulated individually, but should also be made to relatives and acquaintances regularly and reliably.

If business premises or offices are to be renovated, you can also try to obtain a personal loan via a corresponding platform on the Internet. There private individuals lend money against interest to other private individuals who need the loan for certain projects and business ideas. This can also be a loan for the renovation of a café, a restaurant or other business premises. In such a case, it is important to plausibly explain the reasons for the need for renovation.

Credit through the bank or building society

Credit through the bank or building society

In the case of smaller sums, a loan for a renovation can be obtained via the existing overdraft facility in the checking account. The advantage is that you have the appropriate amount, provided that your creditworthiness is available, and you can buy the materials for the renovation. However, an installment loan is cheaper in terms of interest, which is generally easy to obtain given creditworthiness and good Credit Bureau information, as well as regular income or payments to a business account.

The borrower should not forget, however, that every bank loan in Germany results in a Credit Bureau entry. A installment loan can also be obtained from direct banks on the Internet. The right contacts are also building societies, which grant low-interest special renovation loans.

Swiss credit or funding as alternatives

Swiss credit or funding as alternatives

If the renovation costs do not exceed USD 3,500 or if you can add something out of your own pocket, a Swiss loan is an alternative as a loan for a renovation. The advantage is that banks in Switzerland do not query the German Credit Bureau and do not forward any credit data to the Credit Bureau.

Interest rates are quite high, however, and the bank in Switzerland also requires proof of regular income above the statutory garnishment limit. Unemployed people and start-ups who want to finance a renovation have no chance here, the upper age limit is 58 years at best, often only 55 years.

Anyone who owns a house or apartment can receive funding from the Cream bank in Frankfurt, which promotes investments in environmental protection and innovations on favorable terms. This is the case, for example, if the renovation is accompanied by an energy-saving renovation or the installation of an old-style bathtub creates new living space for the elderly.

There is a low-interest loan for a renovation through Cream bank for private individuals, start-ups and companies, and it is always worth asking. Forms can be filled out and sent online. You can also discuss with your bank advisor what type of public funding of home renovation might be considered.

Loans for seasonal workers

Loans for seasonal workers 

Loans for seasonal workers 

Are they expected and what are the loans for seasonal workers? Sure, there are, but within certain limits and under certain conditions! Before describing what the aforementioned constraints are, let’s briefly mention the ” presumed ” reform carried out by the so-called Dignity Decree of 2018: well, despite what we read in the titles of many articles on the net, as soon as these are deepened, we realize that the the aforementioned dignity decree has NOT brought anything new in favor of the hundreds of thousands of workers with seasonal contracts: it has left everything as it was before.

Do you think that, despite this “reform” (which has affected fixed-term contracts), in 2020, work for seasonal activities is substantially regulated by a law dating back to 1963, precisely by Presidential Decree no. 1525/63. Ultimately, the only benefit for seasonal workers is and remains that of the right of way, that is, the right to be preferred over new hires regarding the next working season.

Seasonal loans & right of way.

Seasonal loans & right of way.

This pre-emption is important in the case of loans for seasonal employees. In fact, in addition to securing the job for the next season, the right of way could (we use the conditional) constitute, as we will see, a “reference” in front of a bank and/or financial institution to which we will ask for funding. We remind you that the right of precedence is exercised in writing, possibly by registered letter with return receipt, and within 6 months from the termination of the seasonal employment contract.

The right to be “preferred” presented in writing has an annual validity: if within the year the employer wants to make new hires, the previous seasonal worker who has expressed in writing the will to re-work with the same employer, takes precedence over others. But all this speech (the precedence expressed in writing) has one premise: that the seasonal worker has been hired with a regular employment contract. Otherwise? Let’s see it later.

Personal loans for irregular seasonal workers:

Personal loans for irregular seasonal workers:

Without many words we refer to all those who perform tasks although seasonal but in the dark! Unfortunately there are and there are also many. What to do with this case? Where interested, we can do no more than postpone a study on loans for undeclared workers.
If, on the other hand, you have a regular contract and you intend to apply for a loan, then the aforementioned right of precedence may prove useful: copy a copy of this and present it together with the documentation. Consider that the institution may not consider being preferred in the next work season reliable.

This depends above all on who the employer is: think of a large, famous company that has been using seasonal workers for many years to put its goods and/or services on the market (a panettone, a wine, a tour operator, etc.). ). In these cases, the bank or financial institution to which you turn, considers the re-assumption by a well-known brand as certain with respect to an unknown employer and therefore could grant you the financing with reasonable repayment times. Yes, because the main problem of seasonal workers is precisely that relating to the payment period of the installments.

Loan for seasonal workers:

Loan for seasonal workers:

The real problem. Anyone who does any seasonal work, even if it is in order, has a problem: the very short payment period within which all the financing will be repaid. In truth, the aforementioned problem is common to all types of loans for fixed-term workers to which we refer further details. What are we talking about? Let’s say that a seasonal employment contract hardly exceeds six months, therefore the loan must be repaid within this period or in six installments. But the problem is not if they do it: we have also indicated them on a loan with a 6-month contract and who does it.

To obtain such a short loan, in practice, you should make a prompt request during the first days of work otherwise then it becomes useless! In the end, if we are denied the loan or want a loan longer than half a year, we need collateral: which ones? First of all, a third party guarantor who could also be the employer (or the legal representative if you work in a large company), perhaps equipped with the document that contains the right of precedence. If that doesn’t work, extreme forms of credit remain, e.g. the lien or the loan in bills.

Do you take credit for the first time?

Life without the credit is almost unimaginable today, and many do not even know that they are living on credit when they are running low on their current account or when buying on credit cards. The word credit is often used in everyday life without being understood by many. It comes from the Latin word credo which means belief, that is, trust. When we take out a loan, we use someone else’s money with the promise that we will repay it within a certain time, so the essence of the credit relationship is trust between the two parties – the one who lends and the one who is the loan beneficiary.

It is important to be well informed about the details of individual loan products when you plan to take them. It is the same with marriage; Although credit is not for all time, those who know well what they have promised and to whom they have promised are doing much better.

If you are just getting acquainted with a loan

If you are just getting acquainted with a loan

It is important to understand that it has a significant impact on your financial situation for the duration. It doesn’t have to be a complex loan like a home loan; because both minus current account or credit cards have a major financial and psychological impact on your home budget.

Also, irresponsible behavior towards financial products and services such as over-indebtedness, overdraft, late payment of loan repayments, etc., destroys your financial reputation by which many institutions evaluate the conditions under which they will agree to lend you money or cede the rights to use certain services.

Individuals with a good credit profile often get much better conditions that are not available in the market because an institution may trust them more to fulfill the obligations they have agreed to. Because of this, think carefully about whether you pay your financial obligations regularly and build a good financial image – it will ultimately pay off!

The two most important tips for beginners in the credit world are to create the image of a good bank customer and to manage their personal finances responsibly.

Create the image of a good bank customer

Create the image of a good bank customer

Very often, tidy payers and solvent individuals get much better credit conditions because of the good image they have created. Just like any other image, the one of a good client is not created overnight but is the result of how you manage your money, which is evident in the banks and financial institutions with which you do business.

When you open an account, it is important that you know all about the financial services you are using and that you are not taking on those you are unfamiliar with and who do not know how they work – which may cause you problems (such as using the minus margin).

In granting a loan, the bank will, with your consent, verify your financial obligations and creditworthiness, and will then decide whether you are able to settle the obligations to which you will agree. Because of all this, it is important how you manage your financial situation.

Manage your financial situation

Manage your financial situation

Spend only today as much as you can afford, or only as much as you can pay at the end of the month when your bills arrive. Paying all the bills regularly within the due date is a responsible behavior towards money that shows your attitude towards your financial obligations.

This is also true when taking out a loan – assume only the credit obligation that you will be able to settle on a regular basis if your financial situation worsens. Otherwise, you will find yourself in difficulty.

Combination loan for stability and flexibility

Combination Loans – The Most Important FactsCombination Loans - The Most Important Facts

A combination loans consists of two forms of loan. The combined loans can be repaid using a fixed-rate loan and a variable interest rate agreement. Borrowers benefit from the low market interest rates and at the same time have the option of a special repayment.

Combination loans – two types of loans

Combination loans - two types of loans

The combination loans is a loan composed of two types of credit. This type of loan combines a fixed-interest loan with a variable loan. If the borrowers have opted for a real estate or construction loan, they can benefit from the currently low interest rates on the market.

At the same time, the builders receive the option of special repayment through the combined loan.

  • The special repayments are usually associated with interest premiums. However, these interest premiums are required together with the general, long-term credit conditions. The builders can thus enjoy a free special repayment right.

Combination loans – users of this type of loan

Combination loans - users of this type of loan

Especially borrowers who expect additional income in the medium or long term benefit from combined loans. This can be done through an outstanding inheritance or gift. A borrower can also make special payments through the upcoming sale of an old property or a high deposit resolution. A combination loan is also possible for borrowers whose salary will increase in the future, such as:

  • through a promotion
  • through foreseeable strong profit-taking as a self-employed.

All these borrowers then have the option of repaying the variable loan portion more quickly. However, users of combined loans can also be borrowers who speculate in the future on falling mortgage rates. These borrowers then have to inform themselves at least once a month about the development of building rates.

  • Borrowers who opt for a combination loans must observe the interest rate development so that the variable loan portion does not become extremely expensive.

Loan amount as a key figure for mortgage lending.

The loan amount is the amount agreed in a loan agreement that the applicant receives from a bank or credit institution.

This pays interest and must be reimbursed in accordance with the contractual agreements. Determining factors for the amount of the sum include:

  • the total cost of the planned investment
  • the financial situation of the borrower
  • the applicant’s existing equity
  • the borrower’s credit rating

The importance of equity for the amount of the loan

The importance of equity for the amount of the loan

In addition to the total cost, the most important factor is the equity that the applicant can raise. In principle, it is possible to obtain a loan without equity, but the more own capital there is, the lower the loan amount can be.

  • The lower the loan amount, the lower the interest rate charged by the bank and the shorter the total term of the loan.

This method is used for classic loans. Other forms of loans are called:

  • Installment loan (loan amount between 1,000 and 50,000 USD)
  • Annuity loan
  • final loan (the entire amount will be reimbursed by a one-off payment).

The annuity loan and the final loan in particular are often used for real estate financing. Here, the loan amount is often at least 25,000 USD, but is open at the top. The maximum amount depends primarily on the financial situation of the borrower.

The loan amount and the collateral value of the security

If you want to buy or build a plot of land with or without a building or apartment, you have the option of having a so-called mortgage or mortgage entered in the land register and thus securing the loan amount. Lenders almost always require this form of protection when it comes to buying or building a property.

The advantage here is that this form of security can lead to an increase in the loan amount. If a very high value (also called mortgage lending value) is determined for the property and the applicant has excellent creditworthiness, the bank can approve a loan amount that is above this mortgage lending value.

How does a high loan amount affect?

How does a high loan amount affect?

If you want to buy or build a property and have little equity, you can expect a long loan term and higher interest rates. This enables the bank to pay the greater risk. If you are considering the idea of ​​such financing, it makes sense to first use a special calculator, such as the house loan calculator from home credit, to calculate the maximum loan amount that is possible at a monthly rate that can be paid.

This already gives an indication of whether real estate financing can actually be carried out.

  • In order to reduce the amount of the loan, it makes sense to look for sources to increase the equity component. Maybe family members, friends or acquaintances can be addressed. The employer could also help with a very low-interest loan.

Direct disbursement loans – are the most urgent needs Loans and credits

If you are looking for the money immediately to your needs for the most immediate financial, you are in the right place. You have come to the right place!

A good/bad credit profile don’t want to offer any guarantees

A good/bad credit profile don

Direct payment loans can help you borrow money if you: urgently need money have a good/bad credit profile don’t want to offer any guarantees on the loan don’t want to fax multiple documents to lenders don’t want to go to your home or office usually you have fill out a long application form and fax a few documents to lenders and wait until some time to hear from them whether you want to get a loan or not. Thus, the whole process is not only time consuming but also unclear.

We at Direct Payments Loans are a specialized service provider that helps you borrow direct loans to meet your urgent and pressing cash needs. We believe that if you do not get the money, time to make the whole process a failure. Therefore, we ensure that you can receive a direct payment loan within the next few hours of filing your application.

Short-term loans meant to meet your urgent needs

Short-term loans meant to meet your urgent needs

Direct payment loans are short-term loans meant to meet your urgent needs when you have run out of money but received some unexpected any urgent expenses for that. Therefore, a quick payout loan will help you borrow $ 100 in excess of $ 1,500 in direct loans. Since these are short term loans, you will get 14 days to 30 days to repay your time. However, most people decided to repay their payday. Therefore, these loans are also called payday loans.

In order for direct loan loans to help you borrow loans instantly you must: be a permanent UK citizen aged 18 or over be a permanent source of income have a valid bank account

If you meet the above requirements, apply now to get the money, the next few moments!

Former Government Agency loans for Public Employees, Guide to the offer and rates

By taking advantage of ex Government Agency Loans for civil servants, you can satisfy many personal and family needs: from the purchase of a home to that of a car. They are credit lines that enjoy advantageous TAN, with various repayment opportunities, the duration ranges from one to ten years. But why get these funds, how should they be requested and by whom are they granted? Let’s find out every detail.

What are and why ex Government Agency Loans are convenient loans

What are and why ex Government Agency Loans are convenient loans

Ex Government Agency loans for civil servants are loans that refer to Social Institute. In particular, the competent structure is the Public Employee Management. These funding opportunities respond to questions from members of the Unified Management of Credit and Social Benefits (civil servants and pensioners).

This is an offer which includes both the products presented directly by the social security institution and those of banks and financial institutions that operate in compliance with conditions defined in collaboration with the Institute.

The direct products correspond to the Small loan for members of the Unified Management and to the Multi-year direct loan, while the Multi-year guaranteed loan is granted by affiliated credit institutions. What are their qualities, how do they work and when to request them? Let’s move on to the details.

Ex Government Agency small loan rate, duration and expenses

Ex Government Agency small loan rate, duration and expenses

The Small Loan is the most versatile product among ex Government Agency loans for civil servants, because it allows many uses. It is therefore the ideal proposal for those who need money to make various, small expenses, perhaps unscheduled.

The TAN characterizes the loan: the interest rate corresponds to 4.25%, one of the lowest percentages on the Italian market. On the amounts, it all depends on the duration of the loan and the value of the monthly salary.

The Regulation establishes various ways of repaying the debt: it starts from a repayment structured in 12 months, but can last up to 48 months.

However, Social Institute foresees some costs that fall on the debtor. There are expenses for the management of the administrative aspects (0.50%) and a premium pertaining to the risks relating to the credit line.

Long-term loans for civil servants: TAN of the assignment of the fifth and the other characteristics

Long-term loans for civil servants: TAN of the assignment of the fifth and the other characteristics

If the member prefers a repayment of the debt distributed over 60 or 120 months, he can think of the direct multi-year loan. In addition to having a different duration, it allows you to receive a lower TAN compared to the Small loan: the rate is equal to 3.50%.

However, it is subject to particular restrictions on the use front. These concern personal and family needs. Here are some of the purposes:

  • Ordinary maintenance of the home;
  • Purchase vehicle;
  • Birth children;
  • Marriage;
  • Purchase of the house of residence;
  • Early repayment of the mortgage.

The multi-year loan is provided with a repayment plan marked by the assignment of the fifth.

The Multi-year Guaranteed Loan, unlike other ex Government Agency loans for civil servants, is presented by credit institutions affiliated with the social security institution. These include the main Italian banks.

Like the guaranteed multi-year, it is a product on sale of the fifth.

The request: how to obtain financing

The request for ex Government Agency loans for direct public employees (Small loan and Multi-year direct) takes place via the Web. The user must use the services of the Social site. To send the application you must have obtained the Social Institute PIN. Retirees can also contact the Contact center and patronage agencies.