Redemption suspension

The repayment repayment, or as often mentioned the repayment suspension, is a term that is primarily associated with mortgage lending. The fixed mortgage sometimes appears as a term. Whatever the name may be, this type of financing differs significantly from the annuity loan.

During the repayment suspension, only the interest on the loan amount will be paid during the entire term. A direct repayment does not take place. Of course it is possible for any type of loan to suspend the repayment. However, this does not mean an interruption of the installment payment for a small period of time, because there is a shortage of money, for example. What else is meant by this, you will learn in the following.

Borrowers have various ways to repay a loan. It can be repaid continuously, and then it is a beard restoration. However, if the loan or loan is not repaid with current installments until the end of a fixed term, there may be a repayment suspension. In the area of ​​mortgage lending, this could mean:

If a repayment suspension is chosen for financing, then only the interest accrues over the entire period of financing. A repayment does not take place at all, and the remaining debt or rather initial debt remains the same over the entire term. Of course, no one in the distant future will make the repayment from the petty cash. This means that any amounts that would actually be received by the lender will drip into another pot so that they are available for repayment at maturity. In addition to the interest, a contribution X is thus invested in the repayment installment. After the agreed term of the loan and repayment, the loan is repaid from the saved benefits. Then the borrower is debt free.

How could such a pot look like that would catch the guesswork?

How could such a pot look like that would catch the guesswork?

 

This could be a capital-forming life insurance or annuity insurance with a capital option. The unit-linked life insurance, a (as safe as possible) investment funds and Bauspar contracts are also suitable.

By the installment in a (for example) life insurance is already defined exactly at the beginning, when the loan comes to an end, which is not the case with a financing as Annuittendarlehen. The annuity loan is always only for a certain time an interest fixed, which is renegotiated after expiration of the contract, perhaps even with another provider. But not only the term fits in the life insurance to the month exactly, the contributions remain unchanged. In the case of an annuity loan, however, they decrease.

A considerable advantage is the fact that, in the case of life insurance as a premium product, the payments on the death of the insured person come to a standstill and thus provide a fatality cover. With the payment from life insurance, the loan can then be repaid early. Financial problems for the bereaved are therefore not an issue. The amount of the installments to be paid can even be reduced by juggling, because if the life insurance is extended to the lives of children, the contributions are lower than for older people.

For whom is the amortization replacement particularly suitable?

For whom is the amortization replacement particularly suitable?

 

Self-users who want to protect their family at the same time, will certainly use a life insurance as a repayment. This saves an additional risk life insurance to cover the residual debt. Investors and investment in commercial property can also be mentioned here, since this group can claim the same interest for tax purposes. The tax benefits improve the return. Redemption suspension may also be useful for leased property.

When choosing the repayment suspension, the following must be observed: In order to ensure the repayment of the loan at the end of the loan term, life insurances should be calculated with the guaranteed insured sum. On the other hand, if the bank calculates with an anticipated expiry performance including profit participation, the full repayment is not secured at the end of the term. If the expected maturity payment of the life insurance including profit shares (profit participation) is not reached, a credit institution may demand special repayments in view of a financing gap that has arisen. It certainly needs little explanation that the choice of mutual fund is not a safe bet, since there is no set expiry date. At most with the Bauspar contract can still be counted as a fixed number.

Life insurers bring yet another advantage to the race: the insurance companies offer their money for home loans usually offer something cheaper than other lenders. On average, these interest rates are approx. 0.5 percent below the usual banking conditions. A disadvantage can affect that insurance companies set a very low mortgage lending limit – about 40 to 50 percent of the mortgage lending value. Lack of money must therefore be procured by other lenders as a subordinated loan. However, this subordinate status costs extra in the form of an

 

20% of households in the Netherlands have payment problems – Loan and credit solutions. – Loan and credit solutions.

According to Delavega, no fewer than one fifth of all Dutch households have money problems. For example, more than 21% cannot pay the bills on time and arrears arise. What is very striking is the sharp increase in the number of households with serious money problems at the higher incomes.

10% of households have serious money problems

10% of households have serious money problems

More than 10% of Dutch households even have serious payment problems. They must make arrangements and receive reminders, so that the financial problems only get worse. Manyu conducted a survey among 2,500 Dutch people.

Great concerns about money problems with higher incomes

Great concerns about money problems with higher incomes

Manyu announces today on its website that it is very concerned about the number of people who have to deal with serious payment problems, especially because they do not receive help. In the meantime, they are lagging further and further behind with their mortgage or rent. In 7% of the cases, even the energy threatens to be cut off. Of the 2,500 respondents, one third in 2018 appear to pay a bill more often later. It is striking that they then usually chose to postpone payment of the health insurance. 19% of the respondents paid the energy bill too late or the mortgage / rent. What worries Manyu a lot is the huge rise in higher incomes with financial problems.

Where does the rise come from?

Where does the rise come from?

It is therefore higher incomes that are more often confronted with money problems. For the time being, agencies such as Manyu are in the dark about the cause of the increase in this group of people. The body thinks that people with a higher income more often have a higher spending pattern, so live a more luxurious life. If they earn less or the costs for rent or mortgage increase, then this group gets into trouble sooner.

What many respondents indicate is that they do not know which institution they can turn to for help, while another large group (285,000 Dutch households) underestimate the problems. They sometimes pay a bill too late but do not find help necessary. However, we recommend that you always turn to organizations that guide people with money problems. Without professional assistance, it appears to be almost impossible to get out of trouble.

Apply for credit cards; Visa or Mastercard?

Using credit cards for your purchases is very useful because you do not have to have cash. For example, when you are abroad, for vacation or for business, you can pay your hotel costs with the credit card. These days, the card has become so established in our modern payment system that it has become almost necessary for online purchases that you make. The biggest difference between a traditional transfer and making a payment with a credit card is that the transfer is much slower compared to the immediate processing of the visa credit cards.

Credit cards do not have to be expensive by definition.

Credit cards do not have to be expensive by definition.

Some banks even give them for free when you want to open a new current account or savings account, and payments that you make with it cost virtually no money and a credit card has now become a very safe payment method. Paying with a credit card is easy because of the wide and worldwide acceptance. Your personal signature and showing the identity card is sometimes still sufficient, but because paying with a signature became relatively unsafe, the pin code on the credit card has now been introduced.

With the help of this secret personal code, a payment became safer. Essential to a PIN payment is the presence of a direct connection to the credit card issuer. If this connection is not present, you can still pay with a signature. A bigger step in the ease of payment with a credit card is the introduction of the chip on the credit card. The pin code can be verified by the chip without the presence of a connection to the card issuer.

The most famous credit cards in circulation are: the visa card and master card. It is recommended that you compare the various providers and publishers of these payment cards! After all, the annual costs can vary considerably. This way you can save yourself a lot of interest in the long term!

The Credit card as an alternative payment method.

The Credit card as an alternative payment method.

There are few alternative payment methods that are nowadays used as often as credit cards. These small rectangular plastic cards offer us a lot of convenience, but inattention with this form of payment can also cause a lot of misery.

Credit cards can also become one of the easiest ways to continuously have a standing cash reserve of revolving credit, always available when you need it. Those who cannot handle this form of payment run the risk of making credit card debts, but everyone agrees that, despite the risks, there are more disadvantages to not having a credit card.

Credit cards as we know them today are relatively new and constantly evolving to make them even safer and more user-friendly. The most important legislation to protect consumer rights with regard to credit was implemented in the mid-1970s. Most companies nowadays also have the option of having their customers pay with a credit card (for example, visas).

A credit card is no longer a superfluous luxury but can not only offer you a permanent reserve of money but also the speed with which transactions are carried out linked to the fact that the owner of the credit card has a repayment period of at least 1 month. to consider the purchase of a credit card.

For example, if you book your trip online these days, you usually have to use your credit card to reserve your flight or hotel. It is the payment method that is now accepted worldwide without actually having a lot of cash in your pocket! With a credit card you can pay easily, quickly and securely all over the world. You can request various credit cards through this blog via the internet regardless of which bank you are at now. You have applied for a credit card securely via the Internet and you will receive it by post within a few days after approval of your file.

Discover the different mortgage loan guarantees.

 

 

The four groups of different mortgage loan guarantees

The four groups of different mortgage loan guarantees

The various mortgage loan guarantees can be categorized according to the type of organization that dispenses them.

  • Mortgage and priory lien registration
  • Bank guarantees
  • Mutual guarantees
  • The pledge

Mortgage and lien registration of money lender

Mortgage and lien registration of money lender

Mortgage and lien registration (IPPD) are at the initiative of the state. The IPPD allows to guarantee already built goods, goods for which there can be a transfer of ownership, while the mortgage makes it possible to guarantee the non-tangible goods (sales in the future state of completion, construction of a home or renovation work,)

The bank guarantee

The bank guarantee

Bank guarantees are real estate loan guarantees from surety companies. These companies were set up by the banks themselves, financial institutions or groupings of banks in order to reduce the costs of government guarantees paid by individuals. The best known sureties are:

    • The Crédit Logement guarantee from a group of major French banks
    • The SACEF bond of Groupe Caisse d’Epargne
    • The MHC bond of the Mutual Credit Group
    • The CAMCA guarantee of Crédit Agricole
    • The SOCAMI deposit of Banques Populaires

The mutual guarantee of official

These are the guarantees of the mutual guarantee societies called “mutual guarantee” or “mutual guarantee of civil servant”. Officials in certain occupational categories may have access to it, including:

    • National Education and the Ministry of Research and Culture, through the bail Casden (Bank of Education, Research and Culture) or the bond MGEN (Mutual General of National Education)
    • From the French Atomic Energy Commission (CEA)
    • Military Military Provident Group (GMPA)
    • Mutuality of the Public Service (MFP)
    • From the RATP
    • From the SNCF

The pledge

The pledge

The collateral which is a guarantee made by the borrower himself. The collateral is based on a sum of money blocked in the form of life insurance for example.

To receive information on the various mortgage loan guarantees from one of our experts, submit your mortgage application.