The number of applications for consumer credit will increase. That is the expectation now that the maximum mortgage from 101% to 100% has been adjusted with effect from 1 January 2018. Renovations, household effects and buyer costs can no longer be co-financed with the mortgage, which was almost a matter of course in previous years. You can finance your house with a mortgage, the other (additional) costs through an (annuity) consumer loan.
Personal loan, revolving credit or hybrid credit
Which loan form of our consumer credit do you choose? A personal loan with a fixed interest rate, duration and monthly charges. Or do you want more flexibility and opt for a revolving credit with a variable interest rate? A combined loan of these two forms of loan is also possible; you then take out our hybrid credit. This credit has been specially developed for consumers who want to borrow a high amount up to a maximum of € 150,000. With this hybrid credit you benefit from both the benefits of a personal loan, a fixed low interest rate and possibly a tax benefit, as well as the benefits of a revolving credit in which you determine when you take out the amount of the credit. And you can withdraw the repaid amounts.
If you have doubts about the loan forms, the tax deduction of the interest costs with a personal loan may be the deciding factor. If you want to realize a renovation or improvement to the home as a loan goal, then the interest is tax deductible. This also applies to the personal loan part of the hybrid credit. The interest rate is now historically low, so to be able to take advantage of this low interest rate during the entire term you choose a personal loan. The interest rate of a revolving credit is variable and therefore subject to any interest rate fluctuations.
Fines-free interim redemption
On all loans and credits with the National Credit Checker you can repay extra free of charge during the term. You do not pay a penalty for this. With extra or early repayments on your mortgage, a fine is often charged for missing the calculated interest for the bank.
Consumer credit versus mortgage
But this is not the only disadvantage of co-financing with a mortgage. For example, if you chose to finance your new furniture, it meant a 30-year term for your furniture. Very long when you consider that the economic life of furniture is a few years. With a consumer credit you conclude a suitable term for the loan so that you do not pay while the products have already been debited.
Financing residual debt
If the mortgage debt is higher than the selling price of your home, that means that you have a residual debt. You can no longer co-finance this with your new mortgage but with a loan. And that is even cheaper. And faster; You can arrange a loan yourself online without the intervention of a notary or long lead times.
Borrow money with advice
Our advisors advise you on the most suitable loan form for your personal loan objective. You take out a loan with us at a low interest rate and with good conditions. Do you want to insure your loan? That is also possible with us with our credit protector. In the event of unemployment, disability or death, your loan or credit is insured so that no financial problems arise.