All posts by Alan Parker

Want to know what the mortgage costs are?

How to understand which are the main cost items to take out a loan to purchase or renovate a property? Whoever makes the decision to buy a house, almost certainly must rely on the disbursement of a mortgage, an important decision that involves a considerable financial commitment. First of all, we must be aware that we will commit ourselves for a longer or shorter period in the periodic payment of installments for the repayment of the loaned capital. But not only: in the decision of the mortgage to be signed, it is necessary to consider the additional expenses that will have to be borne.

First of all, the most important cost item of a mortgage, like any loan, is the interest rate. This index measures the remuneration of the bank providing the loan and is expressed as a percentage of the capital received. The rate varies according to the contractual clauses (can be fixed or variable) and the characteristics of the loan: for example, a longer loan will require a higher rate.

The interest rate is indicated as TAN, the nominal annual rate. However, to best judge a mortgage, it is always preferable to refer to the APR, the annual percentage rate, which also counts all the ancillary costs necessary for the opening and management of the loan. And it is these expenses that must be carefully controlled. First of all, these include the preliminary and opening costs of the case. The preliminary expenses consist of all those costs that the bank faces in the preparation of the loan: from the income and asset checks on the documents of the applicant up to the expenses for the expert who will have to check the conditions of the property he intends to buy.

After this first phase, the expenses for insurance policies are also involved. Remember that the bank cannot impose the subscription of an obligatory policy as a necessary condition for the disbursement of the loan, if not for the outbreak and fire insurance. In any case, the insurance costs, if agreed in the contract, must be taken into consideration. There are also periodic costs related to the collection of the installments and any fees for the bank or intermediary that favored the disbursement of the loan.

To find out what are the costs of the loan, however, we must not limit ourselves to those calculated by the APR, because the rate does not consider it an important part: the notary fees. These depend on the characteristics of the contract, but are needed for the notary to sign the agreement.

 

The time when banks only lend money is a thing of the past. It is possible that because of the difficulties that sometimes led to the bank. In response to such difficulties, there was the possibility of borrowing money faster and without exaggerated formalities. In addition to banks, loan companies and tantrabanks appeared on the financial market. It seems to be one and the same, but it’s not like that.

What a bank is, everyone knows more or less, but distinguishing a bank pair from a loan company is a challenge and creates more problems. How is this known? A questionnaire was conducted on social networking sites, which included the question: what is a tantrabank in your opinion? Here are the answers:

• 51% of respondents – another name of the loan company,
• 46% of respondents – a company operating in a similar way to a bank,
• 3% of respondents – a type of traditional bank.

The results are not surprising. The respondents most often identified a tantrabank with a loan company, even though it is a mistake. They are two other institutions. How did such an error occur?
Very probably from throwing companies that are not banks into one bag. If the company is not a bank, but grants loans, it means that it is a parabola.
Looking through various types of blogs and entries about loans, you can see that the terms “loan company” and “tantrabank” are used interchangeably. It is so common that the conviction that this is one and the same has persisted in society.

Since it has been explained that it is not one and the same, what is the difference between the two institutions. It’s best to start by explaining each of the problematic concepts.

tantrabank – collects, lends, does what he wants

To understand what a tantrabank is, one should look at the documents of the Financial Stability Committee. They define this concept very precisely. According to the records provided therein, dated back to 2008, a tantrabank is nothing more than an institution in which financial products are found, almost identical to a traditional bank. Therefore, tantrabanks can borrow money, but also accept it from customers as deposits.

Polish banking law says that such activities are intended only for banks and for savings and credit unions, while the tantrabank is neither this nor that. Due to this situation, it is not subject to the Polish Financial Supervision Authority. This means that he does not have to set a capital limit, he does not have to keep a secret about his clients, and their funds, paid to the company, are not protected.

Investments made by the tantrabank, including loans are made of money that customers pay. In such a system, the client should take into account the fact that some of the funds, or even their whole, may lose.

For this reason, the Commission warns that companies of this kind operate on the principle of a dangerous financial pyramid, and this is a balancing act on the verge of binding law. tantrabanks are not subject to supervision, which is why it is very easy to be cheated by such an institution, i.e. lose a lot of financial resources. From time to time, there are stories of people in the media that have engaged in the tantrabank and have been left with nothing. For this reason, the Financial Stability Committee is actively warning against institutions of this kind. The Public Warning List is published on the KSF website, which contains a list of a couple of banks suspected of committing a crime.

In such a situation it is not surprising that the parables are negatively associated by people, which started to affect loan companies – different institutions – which operate on different principles.

Loan company – borrowing with rules

Loan companies, also called non-bank loans, operate under the Consumer Credit Act. This is related to the inability to charge interest higher than four times the lombard loan. In addition, each advertising material should contain the amount of APY.
These are just some of the regulations, but you can see straight away that, unlike a couple of banks, companies have top-down guidelines. But who is watching over fulfilling the imposed duties? The activities of loan companies are controlled by the Union of Loan Companies (ZEP).
It should be noted, however, that not all loan companies belong to a union. This involves a very sharp and detailed verification procedure, because the relationship imposes strict membership rules. This is to ensure that the company’s clients are assured that they will not fall victim to fraud. The register of companies that belong to ZEP can be found on the website.
The main distinguishing features of the loan company are several rules: they grant loans from the owners and shareholders of the company, they do not take any deposits from customers, but the risk of losing financial resources is the responsibility of the owner. Thus, the client can feel safer.

Bank – rules, deposits, borrowing, but not everyone

A small part of the respondents recognized that the tantrabank is a kind of bank. This is not only wrong thinking, but can have many dangerous consequences. To warn potential clients it is good to mention exactly what the bank is. According to the Act of August 29, 1997:

“A bank is a legal person established in accordance with the provisions of laws, acting on the basis of permits authorizing to carry out banking activities that risk the risk of funds entrusted with any repayable title. (Journal of Laws of 2002 No. 72, item 665, as amended) “

Pursuant to this act, the scope of activities performed by the bank is also determined, namely:

• accepting money from bank clients,
• spending the client’s money, at his request, at the end of a relevant, pre-determined period,
• keeping the account of payments and withdrawals,
• granting loans,
• granting bank guarantees and confirming them,
• activities related to securities,
• mediation in the transfer of money, in the repayment and timeliness of financial operations,
• granting payment cards,
• providing secret access to safekeeping, safe deposit boxes,
• sale and purchase of foreign currency,
• confirmation and granting of sureties.

You can see that the bank’s activity is very wide. However, only loans and credits granted by the bank are important in connection with granting financial support.
In order to get a loan from a bank, it is necessary to be an adult, able to perform legal acts, living in Poland and having a permanent source of income, i.e. employment. In loan companies it is not always required.

What’s more, before the bank issues a positive credit decision, it will check the creditworthiness of the client very carefully, making sure that he has the ability to repay the debt.
A number of factors are considered to be creditworthiness, including: customer age, income and amount. In addition, the banks check the debtors’ records and if there is a client’s name in them, then the chance for a loan decreases or disappears completely.

This is another difference between loan companies and the bank. Companies can check databases, but they do not have to do it. At the same time they need the client’s consent and usually in the regulations, which are approved when applying for a loan, there is such consent.
At the same time, even if the lender finds the customer’s name in the database, it is not always relevant for the approval of the application. The result is that you can get a loan in a loan company much easier.

Banks grant loans for various purposes – housing, cash, car and others. To make sure that the obligation will be regulated, the bank also adds insurance to the loan amount and requires additional security from the client, which may be an additional guarantee or a mortgage. Loan companies do not need such assurances.

In addition, banks provide high loans, so the repayment period can be up to several dozen years. Loan repayments are usually made in installments, determined individually and taking into account the borrower’s possibilities.

Loans in non-bank companies can also be repaid in installments, but such loans are usually paid for a short period of time – a month or two months.
Taking into account all aspects of taking a loan, the procedure of receiving money in a bank is time-consuming. Not everyone who needs cash has so much time.
In loan companies or in a couple of banks the procedure takes less time, even several minutes. Therefore, such institutions come with people who are in a hurry or those who can not get credit from the bank. However, you must remember that rush is never a good adviser.

Banks usually have confidence in banks, other financial institutions require more caution. It is best not to trust tantrabanks at all, but only to reach for a moment when you are sure that you can repay them quickly and at no additional cost.

Do you have several debts whose repayment is an increasing burden on your household budget? Consider consolidating loans, that is, combining different liabilities into one with a favorable installment. Before that, however, get acquainted with the latest offers of such banks as Millennial, Hatew Bank, Payout Bank and Meteor Bank.

• Consolidation loan in Millennial
• A consolidation loan in Hatew Bank
• Consolidation loan in Payout Bank
• Consolidation loan in Meteor Bank
• Consolidation loan in s-Mobile Bank

Consolidation loan in Millennial

In Millennial, you will find the campaign “Transfer your loan to Bank Millennium” guaranteeing Safe Loan insurance and a 0% commission on the amount of consolidated funds. Thanks to this, you can transfer your debt to Millennium on preferential terms. In addition, in most cases the installment of the consolidation loan is lower than the sum of installments of previous debts.

A consolidation loan in Hatew Bank

Hatew Bank has an interesting proposition for its clients – it offers the possibility of taking a consolidation loan in the amount of up to PLN 200,000. In this case, the loan period can be up to 10 years. What is important, you must have creditworthiness and creditworthiness. What does it mean? The bank will check if you have repaid the previous debt on time. If so, there is a high probability that you will be granted a loan.

Consolidation loan in Payout Bank

In Payout Bank, the RRSO consolidation loan may be only 3.46%. However, these conditions are intended for new customers or people who transfer their loans from other banks / financial institutions. In addition, the prerequisite for obtaining such a preferential loan is to spread the repayment into 9 installments.

For other clients, KDY also has a second offer – a consolidation loan from the APRC of 11.16%. The loan period is from 1 to 120 months and additionally there is a possibility to reduce the installment for repaid loans.

Consolidation loan in Meteor Bank

An interesting proposal is also submitted by Meteor Bank – it offers a consolidation loan with an interest rate of 5.9% and APRC for a representative example of 7.55%. The maximum amount of debt you can get is PLN 200,000, but what’s interesting, you’ll get extra cash for new expenses.

Consolidation loan in s-Mobile Bank

s-Mobile Bank is distinguished by the fact that it guarantees a minimum of formalitieswhen settling a consolidation loan. The commitment may be used to repay cash loans, account limits and credit cards, and the loan term may be up to 10 years. In the case of amounts up to PLN 200,000 It is also not necessary to take out insurance. And what should interest you, you will get the initial decision after completing the application.

 

 

Calculation of the residual debt of a loan

 

The calculation of the residual debt of a loan takes place within the extinction count if it is decided to resort to early repayment. This option has become more convenient in the last few years for some categories of financing, such as mortgages, but it is still an opportunity valid also for loans in general. In fact, by calculating the early repayment of a loan, you could save on interest expense by repaying all installments still to be paid in a single installment: no interest rate would be applied to these installments.

The calculation of the residual debt of a loan must take into account some factors, starting from the amortization calculation methods. If in fact, as usually happens in Italy, the bank chooses the French calculation mechanism, the interest expense will be concentrated in the first installments to be paid. What does this mean? When you carry out early redemption, you will have to assess at what stage of the repayment you have reached: if you are at the beginning, the savings in interest could be significant. If, on the other hand, you have already paid many installments, you have already paid most of the interest and therefore the economic benefits will be reduced.

This reduction will be considered of the extinction count . The first part of this document will in fact present the residual capital to be liquidated, having subtracted the interest still to be paid. To this result, any penalty to be paid to the bank must be added. But it is not certain that this is mandatory: if the penalty for a loan normally cannot exceed 1% of the capital still to be repaid, in calculating the residual debt of a mortgage it must be considered that the Bersani decree has forbidden the banks to impose a penalty on mortgages signed after 2007.

Once the amount of the residual debt has been established, the extinction count then proposes all the indications to carry out the early repayment: the IBAN must be communicated to carry out the payment, the reason and the last date after which the count is no longer valid. In this way you will have completed the calculation of the residual debt and will be able to proceed to the early repayment of your loan.

Have you ever wondered how to pay off a mortgage?

This is a simpler operation than you might think, very useful for those borrowers who are in a position to anticipate part of the repayment. Usually, in fact, the opening of a loan provides for the consumer to accept an amortization plan that establishes the amount of the installments and their periodicity: the borrower must then follow this repayment plan for the entire duration of the loan.

However, it is possible that at some point in the amortization period the borrower has a new source of liquidity at his disposal or simply decides to get rid of part of his debt, repaying it in advance. This operation is, in fact, the early repayment of the loan, which can be total or partial: in the first case the borrower returns the entire residual amount of his loan, while in the case of partial repayment he agrees with the bank a sum amount to be repaid in one solution.

With the full advance repayment the loan is considered extinct, while with the partial repayment the main effects will be on the subsequent installments: in fact, as the amount to be repaid has decreased, the amount of the installments will also decrease. Thus structured, the early repayment transaction appears to be very convenient for the borrower, given that no interest is paid on the amount repaid. On the contrary, the bank is losing us, considering that it does not collect the potential interest on the installments still to be paid. For this reason, credit institutions have long demanded the payment of a penalty from those who paid off the loan in advance.

Today, thanks to the Bersani decree of 2007, this is no longer the case, given that this law provides that on all mortgages granted starting February 2, 2007, a penalty can no longer be imposed in the event of early repayment. However, many mortgages still open today were signed in the years prior to 2007. The law regulates this circumstance precisely, making a distinction between the loans granted after December 31, 2000 and those opened instead before that date. In this section, you will find all the information on the penalties still to be paid.

How to pay off a mortgage, then? Contact your bank and arrange with the staff at the counter for return arrangements, bearing in mind that you no longer have to pay any penalty.

The result of the court consideration of property disputes, as a rule, is the decision that obliges the defendant to close the debt in the prescribed period. If the debtor does not comply with this obligation, the bailiffs, who are to collect funds, have the right to impose arrest on his bank accounts. If the defendant uses the credit funds, a logical question appears: how to repay the loan if the account is seized by bailiffs? Further editorial at istitutogentile.com

What kind of account is the arrest?

When you receive a notice that the bank accounts have been arrested, you first need to figure out which of them has been arrested. Most often, banks in processing loans do this:

• Carry out the opening of a current account for the borrower, on which he makes a mandatory contribution every month;
• Additionally, a loan account is opened, to which, according to the payment schedule, funds from the previous account are sent.

The second account does not belong to the borrower. It relates to the bank that issued the loan. Therefore, the bailiffs cannot arrest him. In addition, the balance of such an account, as a rule, is negative or zero. For this reason, it makes no sense to arrest him.

Credit card holders have a slightly different relationship with a banking institution. For them, most often, only a loan account is opened. But the important point is that the money on it, according to the law, belongs not to the borrower, but to the bank. Therefore, they are not allowed to arrest their bailiffs. But the banking institution itself can limit the borrower access to the funds on a credit card by decision of the FSSP or on its own initiative.

When you receive a notice of seizure of accounts, first find out which of the above schemes you cooperate with the bank. This will determine further actions.

Ways to close a consumer loan

When an arrest is imposed on a current account, a verbal agreement can be concluded with the bank to enter payments into the loan account. To do this, you must visit the branch of the banking institution and issue a relying statement. Payment can be made in the following ways:

1. Through the cash desk of the bank.
2. Transfers from accounts that are opened in other banking institutions.
3. From another checking account opened again.

You have the opportunity to open a new bank account and bind to it a loan account for the repayment of loans. It is best to make the owner of a new account of another person. In this case, there is no situation. When bailiffs arrest him. To create conditions of consistency of payments, issue a specific bank order, which allows you to automatically transfer money to the debtor’s account.

Closing a credit card debt

How to pay the loan when the bailiffs seized the credit card account? As mentioned earlier, the bailiffs are not allowed to completely block access to the funds in the account. The debtor has the opportunity to replenish it. Therefore, you can close the existing debt in the usual ways:

• through ATMs;
• through the cash desk of a banking institution;
• using cashless transfer.

Since officially both the credit card account and the money on it do not belong to the debtor, you can try to cancel the arrest. To do this, you should take a document in a banking institution about the lack of your own money on a credit card, and then submit it to bailiffs who conduct your business.

Likelihood of debt relief

Many debtors are interested in – is it possible to agree with bailiffs on the distribution of loan payments? This possibility exists. She is stipulated in Article 203 of the Code of Civil Procedure of the Russian Federation. According to this document, it is possible to obtain an installment plan for the closure of any recovery, which is established by the court.

For installments should refer to the bailiffs who lead your case. And write relying statement. This must be done immediately, as you receive a writ of execution, or no later than 5 days later. Otherwise, it will rely that you do not wish to fulfill the obligations on you to close the debt, and you may be charged an executive penalty in addition to the principal debt.

To substantiate the filing of an application, you should submit documents about your own financial situation:

1. income document;
2. expenditure documents;
3. documents that confirm your precarious financial situation.

In addition to these certificates, you can provide witness testimony in writing, which confirms your financial situation.

In addition to appeals to the bailiffs, you can contact the bank itself, which provided a controversial loan. Based on the situation, he can provide credit holidays or reduce the monthly payment.