Older people have a harder time getting money from the bank to make their own property accessible. For example, if a retiree who lives in a paid home wants to remodel it according to his age. Especially those who are interested in real estate without equity, low income or old age, have a hard time getting a loan. This has made it particularly difficult for pensioners to lend. Larger home repairs can not be funded due to a low pension, but you do not want to sell your home?
Retirees find it more difficult to get home loans.
The owner, a pensioner, wants to borrow 200.000 USD for the renovation. Credit denied. Even after the ten-year fixed-interest period expires, the house bank does not believe that the family’s income is high enough to cover the remaining debt, even with increased interest rates due to the current parental leave. A property inheritance that a lady can expect can not change the mindset of the banks.
Consequence: Credit denied. More and more people who want to make a real estate loan application, are in this or a similar situation. The creditworthiness of consumers must be checked even more than before. The decisive factor is whether the consumer can pay off the money during his lifetime from his current income. “The new task results from the fact that a financing only now has to be checked up to the complete eradication.
Under the new rules, up to ten out of a hundred loan applications are initially rejected, mortgage brokers. “They will not be accepted, or the clients will have to provide extra security or repayments,” says Creditwebs employee. For example, the building societies alone granted around nine percentage points less home loans in the first half of 2016 than in the previous year.
Pensioners and the self-employed
Victims are mainly young relatives, pensioners and the self-employed, as well as people in special circumstances, who do not have a large fortune, but are not underserved. “This makes it easier for young people to enter a secure old-age provision and retirees have disadvantages through age-appropriate restructuring or reorganization,” says Stefan Starst, Managing Director of the Lite lender company mortgage portal. So far, real estate financing law has been simple.
It evaluates the property and reviews the earnings situation. If the lending rate can be paid out of the current income, there were hardly any losses. “This is much too cumbersome for many customers because they only want to compare one offer with another. When lending narrow limits are set: “The borrower has to serve the money over the entire duration of his now known today’s income.
Thus, twelve percentage points of the homeowners in the Federal Republic indicated that it was difficult for them to increase their rates. However, it is 35 or 27 percentage points in France. Even if you have already paid your loan on time for years, you can suddenly fail in a renewal. Previously, prices reacted to the credit decline with a one-year delay, “he says.
Key figures such as the amount of the loan, the value of the property or the income of the debtor are to be deposited in anonymous form.