Banks lower mortgage rates – Experts expect further steps.

 

Interest rates on mortgage lending in the usd area have declined

Interest rates on mortgage lending in the euro area have declined

Significantly by more than ten basis points in the last few days, according to information provided by various financial intermediaries, including the Money-based market leader. Mortgages up to a loan expiry of sixty percent are reported to be available again at borrowing rates below five percent. According to estimates by economists, interest rates will continue to fall in the coming months.

According to the experts, the reason for the favorable development from the point of view of builders and owners is the cooling economic trend, which leads to disinflationary tendencies caused by the decline in prices Roh l should be significantly strengthened in recent weeks.
Economic momentum is currently easing worldwide as a result of the US financial and mortgage crisis. Key economic indicators point to a decline in GDP growth in China and Japan as well as in the US and the usd area. A weak economic development always dampens macroeconomic price pressure.

The development of inflation is considered by economists as a central determining factor for the future development of interest rates and thus also the burden on builders. The reason for the significance of the inflation rate is the attitude of the European Sentro Bank with regard to its monetary policy. The central bankers see inflation as a threat to monetary stability and are always tempted to curb inflationary developments through a restrictive monetary policy and thus an increase in key interest rates. It was not until June that the NIM had raised interest rates by 25 bps on its supply of liquidity to the banking sector, given record-high inflation in the usd area. 

Due to the looming decline in inflation,

Due to the looming decline in inflation,

The NIM will be making its first downward interest rate cuts in just a few months, according to analysts. If prices continue to decline in the fossil fuel markets, the HICP inflation rate will fall to very low levels towards the end of the year as a result of the very high level of comparisons, leading to interest rate cuts of more than 50 basis points would be justified.
Builders and homeowners who are looking for an initial or follow-up financing, should be patient and wait for the development of the coming months. The conclusion of forward loans is currently not recommended by financing experts as well as a long interest rate on newly issued loans.

If economic development worsens significantly over a long period of time, interest rates of less than four percent according to experts are conceivable. The central banks traditionally try to support a sluggish economy with cheap money, unless a rapid devaluation of money precludes this goal.

Loan for 30 days free of charge

Who seem to doesn’t want something free of charge, right? Surprise gift to purchase. How come an apple plucked from the tree for which we do not have to pay tastes better than this purchased at a supermarket? Simply put, we are more than happy about stuff that is up for grabs. You may have heard of free loans. What does the 30-day free loan appear like and you really don’t pay something extra?

Totally free 30-Day Loan – Who are able to Apply?

loan requirement

At first glance it may seem that we do not have to come back such a loan, after all, it really is free. The reality is a bit various, you have to pay the leased amount, but you don’t spend any extra fee. People of the Czech Republic that are over 18 years old plus who have a bank account may apply for such a service.

Free 30-Day Mortgage – How much can I make an application for?

Each company has different conditions, several often you will meet up in order to 10, 000 crowns. In some instances it can be 20000 crowns plus some companies will lend a person up to 50, 000 caps for free.

30-Day Free Online Loan: What Do You Need To Document?

loan requirement

What documents to have accessible? Prepare a valid identity card and preferably a second identification document. Another requirement might be a bank statement for the last 2-3 months and confirmation in the employer. If you are already a normal client you usually do not have to show your income repeatedly.

I borrow a second period is a free loan for me personally?

Many clients anticipate lending the loan once again without any overpayment, but regrettably, the reality is different. The free of charge loan is only for new clients who apply for the first time.

What is the most common maturation of a free loan?

The most common maturity has already been mentioned one month, but some businesses will lend you absolutely free up to 3 months.

How does the free mortgage repay?

How does the free loan repay?

There are several methods to repay the interest free mortgage. The first is to send an excellent amount to the account quantity specified in the contract. You can also visit the post office and spend the debt using the postal purchase. The last option is that you go to the nearest lender of the loan provider and pay the money within cash.

Bigger bosom on credit

 

 Beauty is a feature of the present. No one wants to have been nice or it will eventually be. Now it has to be, even if there is no money for a necessary correction.

Probably the ladies who want to be taken by gynecologist to the chest, because here there are equal to the corrections equal to the required credit. Even if one patient or another is skeptical at first and immediately suspects a loan shark behind the offer it does not take long, and is the doctor that women trust also in terms of pumping.

According to , between 5 and 10% of women accept the offer. These are usually young women who are looking for a partner and not yet have so much money on the high edge to pay the intervention in cash. The gynecologist takes care of another necessary partner and pulls the financial services provider Medipay ashore, who in turn works with the Readybank. This pays the fee to and lets it repay the patients in monthly installments plus interest. Medipay cuts a brokerage fee.

Demand is growing

Demand is growing

In the US, the trend has been on the rise for a long time. There, banks and special service providers offer appropriate loans. Companies like  Money Bank or Medicredit have been active in this segment for years in the land of unlimited opportunity.

Often enough overseas ideas have spread in Germany as well, and so it is now with credit for the sake of beauty. The hope culminates in the fact that soon an increasing demand for the offers occurs. These are not just geared to new bosoms and teeth. Also eye laser treatments, hearing aids, even artificial insemination or expensive check-ups can then be funded. What has not all developed from loans for patients who had to undergo a really expensive bit restoration without additional insurance.

The industry at a glance

The industry at a glance

Meanwhile, teeth are no longer the main business. Today, lending extends to all treatments that a patient has to pay for himself. The teeth rank only under further ran. “Eye laser medicine is on the rise,” says Jrg Heinen, managing director of Medipay, the financial firm specializing in medicine. However, Medipay is not alone on the market with its task, even if the industry is still quite manageable. But some banks and factoring companies are already pressing themselves onto the boat of special-service providers offering health loans.

Back to the teeth, with which everything started. The dental billing center Medicalfinance is an established provider in this field. In Germany, it works together with 700 dental laboratories, which make the connection to the doctors. The doctors then inform their clientele about the possibility of paying the implants, and the circle closes. The fact that the idea pays off shows an increase in demand of 30% since 2005. In 2006, GAZ Plus provided loans amounting to between 4 and 5 million usd.

The banks are covered

The banks are covered

The offer for implant credits is a well-known company, namely no less than the Postbank subsidiary Bank. This forgives the loans, while the bank itself prefers to be covered. He is responsible for Sales Finance Healthcare at Bank. And he adds: “GAZ Plus is our largest mediator, but there are also numerous loan inquiries at our head office in Hameln via online forms on hospital homepages.” If we let him chat further out of the box, we also hear: “In most cases, the payout can be made within 24 hours, with an average lending volume of € 1,600, with an upward trend uniform at 7.9%. “

Loans only for the sake of loans?

Loans only for the sake of loans?

There are numerous doctors and clinics that support interest payments for their patients. For example, the eye laser provider Euro Eyes, which offers interest-free loans for up to twelve months in cooperation with the specialist service provider Medipay. That raises the question of how it is still earned. This is clear with the information that the loans function as a marketing tool that bring the business of doctors in motion. “Any financing in the field of health care would be an otherwise untreated treatment,” said  from Bank.

This idea is being actively used. At Mediplay alone, the majority of the 2,800 dentists access it. In addition, already 200 dental laboratories and 550 other customers have found taste in it. For an interest-free loan as advertising, doctors, laboratories and clinics pay 4% of the total amount for a term of 6 months. The fact that this is profitable is shown by the figures from last year, when Medipay took out loans worth 12 million usd.

And there is still a lot of potential here, especially when other sectors outside the dental market are added. Credits amount to the dentures on 1180 usd on average. In other divisions, it is just under 3000 usd. If that does not trigger the gold rush among the providers. At 1-2% commission here and there, the dollar signs are already sparkling in the eyes, because Heinen already speaks of a “mass business”.

The market profile hinder

The market profile hinder

Already emerging new players, who rely on new medical fields, such. Eg the Readybank. It was once called Bank and has been a subsidiary of the LB Group since 2006. But the Readybank is just one of many money houses that are now trying to cut a leg in the health care segment. The focus is on the public health insurance funds with the hope that they will retire further. Thus, the parked leg could become a pillar in the financing business. 

Benefits without end

Benefits without end

The generation of over 50’s will significantly shape the market. Not only dentistry, ophthalmology and hearing care are a topic for this group of patients, but also orthopedic therapies, home care and mental health will be sold to a considerable extent. In addition, shock wave therapy, artificial insemination, stair lifter. Cures and seminars complete the offer.

Readybank received 9,000 credit applications in 2007, and as the market is booming, double-digit growth will not be a utopia in the coming years.

Also attractive is the business with the financing of beauty surgery. And Nelles thinks “diethat the credit factories in the background enjoy an invaluable advantage.The normal customer does not go to her house bank and says,” I need a loan for a breast implant. “

Already a term appears for such credits. Beauty credit is the name of the financial service, and it is offered, inter alia, by the financial intermediary Ultima, which specializes in this segment. Around 800 applications per month can be seen. “The main business with loans for aesthetic surgery, however, was made by the beauty clinics with their partner banks.

Targeted use of the loans

Targeted use of the loans

“5 10% of patients will take advantage of special loan offers,” says Gensior, adding, “It’s mostly young women between the ages of 20 and 30 who are not directly exposed to liposuction or breast enlargement But it becomes problematic when the patients become younger. “

If the loans are so specialized, why not put some innovative therapies on the market? Here, too, Medipay is a front man, working together with the pharmaceutical company Schering in gynecology. It is about a hormone spiral, the pregnancy should verhten. 200 – 300 USD costs a therapy that the ladies have to pay themselves. Help comes from the specialists. They offer financing for the treatments.

What happens with a currency reform with loans?

 

Many savers are worried about their fortunes in the usd crisis. But what happens during a currency reform with current loans? Pixocredit has started a survey on this question. One of the findings of our study: Many consumers consider current loans dangerous in a currency collapse, but historically this concern is rather unfounded.

The question was asked to 1040 people, which happens in case of a currency reform or similar events with current loans. The representative survey was conducted on behalf of Pixocredit by the market research institute Yuuboot in the period from 14 to 16 October. The participants could choose between seven answer options.

Loans and usd Crash: What do Germans think?

Loans and Euro Crash: What do Germans think?

38 percent of the respondents believe that a current loan remains in the event of a currency collapse, but wages and salaries decline. In this case, the credit burden would actually grow. Particularly striking: 26 percent of respondents said they had no real idea of ​​the impact of currency reform on current loan agreements. This extremely large proportion makes it clear how much uncertainty is involved in this sensitive problem in the game.

16 percent of respondents believe that loans are not affected by currency collapse. A further 15 percent of participants expect credit balances and loan liabilities to be cut to the same extent in such a situation. After all, 11 percent trust the German state to provide additional security to borrowers. B. demand in the form of forced mortgages.

On the other hand, only 6 percent count on state aid and consider it possible for the state to reduce its debts – eg. B. by a transfer to the state-owned HeW. Also, 6 percent of respondents believe that large loans over 50,000 usd will be canceled, while smaller loans will persist.

There are hardly any differences between East and West

There are hardly any differences between East and West

Between East and West, North and South, as well as between men and women, there were hardly any significant differences in the answers. Noteworthy: in the income groups “less than $ 500” and “$ 2500 to $ 3,000”, more respondents tend to believe that the credit burden will increase in real terms through a greater adjustment of incomes than credit downwards. Even young people between the ages of 18-24 are more likely to feel such a scenario than older people. With a higher level of formal education, this concern is also growing.

As a result, three-quarters of the respondents fear a monetary reform or a similar escalation of the usd crisis from the perspective of a borrower (!). Historically, this view is incomprehensible: in the last three currency reforms in Germany, borrowers were much less affected by it than savers, or even de facto relieved.

A look back in history: currency reforms and credit conversions in Germany

A look back in history: currency reforms and credit conversions in Germany

In the past 90 years there have been several currency reforms in Germany. In 1923, there was great inflation, at the end of which the former currency “Mark” was switched to the new Reichsmark in the ratio “10 trillion to 1”. Savers were thereby expropriated to nearly 100 percent, borrowers against it to nearly 100 per cent of the debt. Homeowners had to pay from 1924 to 1943 a so-called “house interest tax”, which should compensate for the resulting from the devaluation advantage. Simple personal loans were, as far back as they were, simply “disappeared”.

Only 25 years later, in 1948, a currency reform took place in what was then the western occupation zones. In the course of the introduction of the German mark loans in the ratio 10: 1 were converted. Wages, pensions, pensions, rents, leases, etc., however, were converted at a 1: 1 ratio – in effect, borrowers were thus released from the currency reform. Even after the war, there was a burden-sharing, which was to compensate for the debt-forgiveness advantages created by the currency reform. However, it mainly concerned real estate owners and commercial loans and not private loans.

Borrowers are among the winners of currency reform

Borrowers are among the winners of currency reform

In 1990, the German Mark was introduced in the former GDR. Again, this was a currency reform that favored borrowers. Loans were converted at a ratio of 2: 1, while wages, salaries, rents and other recurring payments were in the ratio 1: 1.

Historically, borrowers are among the winners of currency reforms and similar events. In particular, there has never been a real appreciation of liabilities in the past. The opposite was the case: since the economy had to be restarted quickly after the currency reforms, “legacy” was reduced or even eliminated by favorable changes.

Do not postpone sensible loan plans

Do not postpone sensible loan plans

For private households, the usd crisis should therefore not be a reason to forego meaningful loans or postpone planned projects. The credit environment has never been as favorable as it is now: interest rates on personal loans are lower than ever since the Second World War.

It is to be feared that many loans will nevertheless be postponed because the risks of a possible currency reform are too undifferentiated. This could be a reason for the demand for consumer loans, which is only moderate despite the best general conditions.