2.5% mortgage loan repurchase: is it possible?

Speculation is rife on the web regarding offers to buy credit at low rates but can we really benefit from a credit buy at such a low rate? Here is the answer.

Real estate rates: record levels

Real estate rates: record levels

Real estate rates have never been so low, enough to wake up the real estate projects of households and reduce the monthly payments of owners already in place. Simply put, it is estimated that a household that lives in the north and wants to borrow over 15 years can obtain a rate of 2.5%. A very attractive proposition for households but only solid profiles will get this offer. That is to say households with long-term and significant incomes, the absence of payment rejections and a low debt ratio.

2.5% home loan buy-back: for whom?

2.5% home loan buy-back: for whom?

Can we imagine that this 2.5% offer is applicable to credit consolidation? Not so sure but we are getting close. The repurchase of credit in itself consists in lengthening the duration of repayment to reduce the amount of the monthly payments. This therefore implies that the initial loan must be repayable over a period of less than 15 years. Another important point, this operation is generally requested when the debt ratio plays with the limit (between 33% and 50%), so the borrower must have a debt ratio below this area.

In other words, this offer can be considered during a credit consolidation but it will be granted to a household with significant income, a low debt ratio and the absence of payment rejections or bank card. In other words, a household that wishes to simplify the reimbursement of its credits and obtain a single withdrawal.

The repurchase of credit changed with the fall of the rates

The repurchase of credit changed with the fall of the rates

There is one notable observation on the credit consolidation market, that of its evolution. In the past, only households approaching over-indebtedness thought of grouping loans to reduce their monthly payments and start off on better financial bases. It was sort of the last chance solution before the over -indebtedness case.

Today, this operation now affects households wishing to reduce the cost of their loans by taking advantage of lower rates. These are opportunistic households. The latter do not necessarily need a grouping of credits but take advantage of this solution to standardize their repayments and add an amount dedicated to new financing. Thus, they leave over a longer period, with an increase in the total cost of credit, but often at a lower rate.

To obtain a feasibility study for a loan buy-back project, this website offers its free, no-obligation simulator.

Non-bank loans for 12 months – what is the cost?

Non-bank loans are consistently very popular. Recently, an increasing number of customers are choosing installment loans – thanks to which the repayment period is longer and the debt can be repaid in monthly installments. This means that repayment of the loan is no longer such a heavy burden for the household budget.

Non-bank loans for 12 months – the most important information

Non-bank loans for 12 months - the most important information

The main advantage of non-bank loans for 12 months is the fact that their repayment is divided into convenient installments. This minimizes the risk of late repayment.

Long-term loans online can easily replace a bank loan in the traditional sense. In addition, non-bank loans for 12 months give us many more options than popular payday loans. However, a big disadvantage of loans for 12 months is checking borrowers in various debtors’ bases (such as the Credit Information Bureau or the National Debt Register) and in terms of creditworthiness

How to take a loan for 12 months – a guide

How to take a loan for 12 months - a guide

The most important elements of the 12-month loan agreement are the loan period. The longer the repayment period, the higher the total cost of the loan. Thanks to it, however, monthly installments will be much lower, which will certainly allow you to ‘add up’ to your monthly household budget more easily. Getting a loan for 12 months usually involves more formalities – companies verify our creditworthiness and check that our data does not appear in existing debtors’ registers.

The decision to grant us a 12-month loan is primarily influenced by our credit history and current financial condition. A very important issue is whether we have permanent employment or another stable source of income. If you do not have a stable source of income, it can be difficult to get a 12-month loan because the number of offers is cut short. If we meet the above-mentioned criteria, you must submit a loan application online and confirm your identity.

A very simple way to confirm your identity is to make a verification transfer, install a special application. This can also be done during a courier’s visit at home. When we complete all the above-mentioned steps, we just have to wait for the transfer to be received. The biggest advantage of loans for a year is minimizing formalities and quick transfer of money to your account. This means that a very large number of borrowers choose this type of loan.

How much is a loan for 12 months? We checked!

Many people are wondering what the cost of a 12-month loan is. The lowest interest rates are offered by Wonga and Rapid Money – the latter lender also encourages clients to offer loans without BIK. An interesting proposition was also prepared by specialists of the Ratado loan company – 127% APRC .

Modern non-bank loans

Modern non-bank loans

The domestic non-bank loans sector has long ceased to be only a marginal addition to the credit offer presented by banks. Today’s loan industry not only gradually expands its range and enriches the offer presented to clients, but also gradually gains the status of increasingly equal competition for banks. As you know, even in the 90s of the previous century the non-banking industry was associated only with such solutions as popular payday loans. Quick non-bank loans were usually granted with home delivery.

At the moment, however, the state of the loan institutions’ offer is diametrically opposed. Customers can count not only on attractive cost conditions and a flexible credit verification process, but also access to a wide range of diverse products, including various promotions. As a result of the evolution of the loan sector, it divided into two main segments. The first and of course the most popular are cheap payday loans. The second segment is non-bank installment loans , which are clearly approaching the offer of consumer loans in banks.

Cheap non-bank loans in various options

While at the initial stages of the existence of the loan sector in Poland, cheap payday loans appeared in only one variant, at the moment customers can literally choose in various types of options. It is worth calculating such possibilities as:

1. Online non-bank loans that are fully available via the internet. Both the application process, verification of creditworthiness and bidding are carried out electronically. The customer usually does not have to attach any documentation to the application, especially if the lender provides the option of verifying personal data and income through modern applications, such as Instantor or Kontomatik.

2. Non-bank loans with the option of payment by GIRO check. This offer is dedicated to consumers who, for various reasons, are interested in paying the loan amount bypassing the banking cycle.

3. Traditional cheap non-bank loans with home delivery. This segment of the offer is gradually marginalized in favor of loans available online. However, many lenders still offer their clients home-based services.

4. Refinancing and / or extending the loan. This is another extremely interesting and useful option for customers. In the case of an offer of a large part of companies, cheap payday loans can be extended at the request of the borrower. In this way, the repayment of the liability becomes much more comfortable and at the same time the risk associated with the lack of timely payment of debts is reduced.

5. Quick non-bank loans with 0% APRC. “Free cheap payday loans” is without a doubt a real hit within the loan sector offer. In this case, the client pays only the amount equal to the sum of the loan granted, ergo does not bear any costs. The condition for using the promotion will always be the timely repayment of the loan.

We have listed only a few of the most interesting aspects demonstrating the diversity of the offer presented by modern loan institutions. To the above list, you can easily add loyalty programs, affiliate programs and the option of negotiating online loan terms.

Online, non-bank loans in installments, i.e. the best alternative to bank loans

Online, non-bank loans in installments, i.e. the best alternative to bank loans

Cheap payday loans still remain the main service provided by loan institutions. However, cheap non-bank loans in the monthly installments system also arouse growing interest of customers. Also in this case you can count on really attractive basic conditions. APRC which is characterized by the best available non-bank installment loans is very often only 17-18%. The repayment period can be up to 48 months, while the maximum loan amount is calculated in tens of thousands of zlotys. Additionally, a non-bank installment loan will not require, for example, the purchase of insurance increasing the basic cost. As often happens with bank loans.

It is worth mentioning that non-bank installment loans online are often also the presence of various promotions. Therefore, some lenders offer loyalty programs that allow for successive reduction of costs for subsequent loans, occasional promotions implemented by SMS codes, reduced interest rates for new customers and other convenient options for the customer.

Credit Card and revolving credit

Caisse offers a bank card formula associated with revolving credit, a practice which can mislead consumers and which does not seem to comply with legislation.

Best Lend Low-cost card but… with a revolving loan

revolving loan

We had the return of a Caisse customer who was offered by his advisor an Best Lend card offer . The latter has lower costs and an additional 2-year warranty extension for all household appliances.

A very attractive offer because it also makes it possible to pay immediately in cash or deferred. This deferred payment is possible thanks to the revolving loan which is inseparable from the Best Lend card offer .

In other words, according to the Lagarde and Hamon laws , it is mandatory to offer a consumer credit contract offer at the same time as a revolving loan offer, allowing the borrower to better assess the cost of his credit.

Revolving credits with Best Lend card: a scam?

revolving credit loan

The client was not clearly informed from the outset of the revolving credit offer, the advisor first presented the benefits provided by Best Lend card (reduced fees + guarantees + possibility of deferred payment). It was at the conclusion of the Best Lend card contract that the revolving loan offer was presented.

Thus, the obligation to provide information on the commitments and risks associated with this operation is not frankly respected. By closely studying the credit contract offer , we can see that Caisse offers it as a banking intermediary mandated by the lender Natixis Financement. This means that Caisse benefits from a commission (mandate) for the conclusion of these contracts. This operation can lead to believe that the advisor is commissioned on the sale of Best Lend card products with revolving loan…

Solution to these offers inseparable from a revolving loan

loan consolidation

We advise our readers to be very attentive to these offers where the revolving loan is inseparable. This is not an isolated case, many consumer players offer loyalty card offers associated with revolving loans .

The borrower must be aware of this commitment and understand that the rate offered is often around 20%. A deferred reimbursement which can be expensive .

We remind you, a credit commits you and must be reimbursed. Check your repayment capacity before you commit. In case of accumulation of credits , the grouping of credits may be an alternative to consider, a request page is available.