Numerous individuals take out the greatest loan of their life when buying their possess property. In case cash is running out due to the corona widespread, you ought to critically audit these costs. There are help and conceivable outcomes to react.
Orders collapse, short-time work, and unemployment increment: the crown widespread hits numerous individuals in the world additionally mess up their funds and long-term plans. If you have got taken out credit for your claim domestic and paid it off, it can be exceptionally troublesome to proceed to pay the instalments. So what to do on the off chance that you presently have to be make do with less cash and cannot pay off your house as arranged?
Assess the medium-term situation and plan again
The Corona Aid Package and its deferrals are designed to provide short-term relief and avoid quick, drastic cuts. But if you make less money for a long time, the short delays will soon no longer help you. You should then reschedule the real estate financing thoroughly with the time saved.
Find a joint solution with the lender to continue the loan relationship under your new financial situation. Be careful with such agreements and do not sign hastily. Examine carefully what impact the solution proposed by the bank has on the entire contract term. If in doubt, seek independent advice, for example from the consumer advice centre. You can also get personal loans from Davenport Finance. They are specially designed for this pandemic situation.
Advantages and Disadvantages
Reduce the repayment
Those who have contractually agreed high repayments can agree with the lender to reduce the repayment – for example from 4% to 1%. As a result, the repayment of the loan is extended. For now, however, you are breathing air.
Those who have been repaying for several years may have more scope. Then the repayment rose from, for example, initially 2 to 4 per cent of the original loan debt. In relation to the current remaining debt, it is then even higher. If you reduce the repayment to 1 per cent of the current remaining debt, you can significantly reduce the burden. The loan repayment will then be extended.
Suspend the repayment
Those who can no longer afford the repayment can suspend it in agreement with the lender. Interest continues to be payable on the remaining debt. This will not decrease until redemption is resumed.
Have the repayments made paid back
As a rule, you cannot have special repayments made in the past repaid. However, some contracts explicitly provide for such a right. If you don’t find such a right in your records, you can only negotiate with the bank.
Rescheduling loans – legal options
Anyone who has agreed to a fixed interest rate of more than ten years can, in accordance with § 489 BGB, cancel the loan in whole or in part ten years after full payment with a notice period of six months and then reschedule it with the significantly lower interest rates today and with a correspondingly lower loan rate.