Credit for young families is not an easy topic. Again and again, young couples face funding hurdles. Fulfillment of wishes becomes particularly difficult when there are already offspring.
We want young families to start the future easier. Credit cannot always be avoided in life. Cleverly financed, lending and family don’t conflict.
Loans for young families – building the future
In youth, people lay the foundation for safe retirement. A common house offers the children nest warmth. At the same time, it is considered the safest provision for adequate retirement – despite the small pension to be expected. Expectations are high for young families building loans. Unfortunately, the EU directive (mortgage credit) is putting new stones in the way.
With small equity capital, as is not to be expected for young families, favorable interest rates determine financial viability. It is the key not to overdo building the house. Currently (2016), the key interest rates are zero and real estate loans are low-interest. However, through the implementation of the EU directive, actually intended as a measure to protect consumers, interest rates threaten to rise.
The policy states that early, free loan repayment on mortgage loans must be granted. Overall, the finance companies lose a lot of money. Cost equalization can only mean an increase in interest rates. This has a particular impact on the credit for young families buying a house. With low equity and higher interest rates, the financing does not work.
How much equity is expected to be required?
With today’s low interest rates on financing, even serious financing without equity can be possible. Only the money for the rewriting costs, notary fees and registration costs in the land register should be on the high edge. The experts are debating how long such a thin financial ceiling can still be combined with home purchases or construction.
Large credit brokerage companies expect interest rates to rise, which will require at least 20 percent real equity. Possible own work on the construction would have to be exhausted with serious calculation. The loan for young families to build a house, all experts agree, will be more difficult. Mortgage credit will have little impact on builders with high equity.
Young families – the right timing for credit requests
In every phase of life there are times when borrowing is particularly easy. Credit institutions are literally rolling out the red carpet. But also periods of life must be reckoned with, in which the path to the loan of choice is “full of thorns”. The difference between the options can be determined by the personal creditworthiness for lending.
It is not equally high in every phase of life. Young families can enjoy the first zenith of personal creditworthiness before the offspring. Credit for young families, based on the creditworthiness of two incomes and many career opportunities, meets all criteria for secure lending. The common income is high, although no dependent person increases the seizure allowance.
Loan requests in this phase are not only easy to approve, but also quickly paid off. High income and low costs allow “exorbitant” installment payments without being massively under pressure in everyday life. It is therefore advisable to use this time to set the course for the future.
To put it in a nutshell: Better a station wagon than later claustrophobia in a sporty speedster.
Young families with children – credit rating for regular credit
Children are the most beautiful gift a couple can make. But unfortunately, small children are among the biggest “creditworthiness destroyers” – directly after a negative credit bureau. At the same time, the income collapses.
Regardless of what politics claims, the mother’s heart puts a temporary end to career desires. It is usually the woman who looks after the house for one to three years. If more children are added, the first day of school for the youngest child can usually be counted as the earliest possible return to work. The result for the household budget is that a wage earner has to pay practically all costs.
During this time, it is not easy to skip the garnishment exemption limits with a normal income. A single earner, with a loan for young families with two children, can count on simple lending from around $ 1,950 net. His salary is non-attachable up to a monthly net income of $ 1929.99. – Child benefit and any child-raising allowance do not count towards the net of the loan.
Creditworthy – despite attachability
The easiest way for young families with children to prove creditworthiness would be the surety loan. In this case, a guarantor, for example one of the grandparents, assumes the credit default risk. Astro Finance offers an alternative that keeps independence for credit decisions for young families with children.
Parents can also apply for a loan to banks and private donors if the attachment limits are far below. Lending via the portal cannot necessarily be compared to ordinary financing. Private investors do not have to be restricted by legal regulations to whom they grant credit.
Credit for young families with children can come true through Astro Finance, even if no regular bank would be willing to take the credit risk.