Monthly Archive: May 2019

Loan for buying a car

Nobody likes to talk about debts, let alone when the money is getting scarcer and you do not know one more out. Many consumers feel the same, they bought on credit and lost track of things. At the end is now a mountain of debt, which consists of several creditors. The long hesitation and waiting in such cases brings nothing. A debtor should confront his problem and try to solve it. A debt reduction loan would be an option that could potentially restore a debt-free life.

The loan for debt reduction

The loan for debt reduction

Up to a consumer insolvency it does not need to come in some cases. The main problem when debt can no longer be paid is unemployment, followed by divorce and divorce. Non-influenceable factors such as illnesses, an accident or an addiction lead to insolvency. In addition, an uneconomical housekeeping is also a reason for the debt. The temptations that arise through the consumer world, are also not to be dismissed out of hand. It is made easy for consumers to buy and also to finance this. The consumer often does not realize how his budget is breaking down. But not only the uncontrolled buying leads into the debt spiral, often it is also a home purchase, in which the consumer has planned wrongly and taken over. The above-mentioned reasons such as unemployment are responsible if the installments can no longer be paid. The reasons are very versatile. When you realize that you are plugging holes from one account to the other, because the credit is no longer covered, at the latest then it is time to worry about the future.

To create an overview of the finances

To create an overview of the finances

If you want to tackle your debt problem properly, you should get an overview of your finances. List all debts and compare the revenues. In most cases, a debt is a minus in the bottom line. If the debtor can not cope with his bills and other debts, he should contact a counseling center. The idea of ​​his debts should also include the possibility to increase his income. Maybe a side job could bring in additional money, which would be beneficial to debt reduction. Be sure to pay attention to its expenses, make a precise plan what is needed for life. If the debt is not so high, you might be able to move forward with the sale of the car, the debt reduction. The sale of other valuable items could also create air.

As a contact person choose the house bank

As a contact person choose the house bank

Anyone who has listed his debts with all creditors and wants to have a debt reduction loan should go to his bank first and talk to the advisors. If you have been a customer for many years and have always paid everything, you might be able to approve a so-called debt reduction loan (debt rescheduling loan). However, the expenditure and the revenue, which are compared with the revenue and expenditure account, must be a financial plus. With a loan for debt reduction, the payment obligations can be summarized and low interest rates are awarded. For the debtor, this may mean that he gets an overview of his finances, a factor that can contribute to debt reduction. Simply a rescheduling is not. It takes a lot of bureaucratic effort to do so.
If the house bank does not approve a debt reduction loan, then the client can try online with direct banks. However, despite the significant debt, a sufficient regular income must be available.

The private bankruptcy

The private bankruptcy

If the debts have become so oppressive, no bank offers a loan for debt reduction, then ultimately the private or consumer insolvency remains. This insolvency gives the debtor the opportunity to get rid of his debts after a certain period of well-being.

Help from close relatives

Help from close relatives

Anyone who has a good relationship with close associates, such as the parents or grandparents, the life partner, could ask for a manageable cash injection here. But this should only happen if one has unconditional trust in the persons and equally the relationship of trust is intact.

How long a consumer needs to reduce its debt depends on its debt and its economic situation. Often it is a long way to get rid of the debt. This requires a lot of discipline and also confidence. The consumer should try to negotiate with his creditors to get rates he can easily pay off. There might be a small budget left over for him to be able to afford something now and then in cash in the following years, because new debts should be avoided at all costs. Under certain circumstances, keeping a household book can also help.

Mortgage Loans – Should You Take A Mortgage?

Compare mortgage interest rates 

Compare mortgage interest rates

Here on the page we give you information on mortgage loans. The article here is for you to stand and be to buy a home. We compare Denmark’s lowest interest rates, right now 4 mortgage loans.

Find Denmark’s best interest rate with our comparison tool at the top of this page. In the following guide we will review the most important thing to know when it comes to choosing the right mortgage.

Compare mortgage interest rates and choose size

Compare mortgage interest rates and choose size

In Denmark, it is possible to finance 80% of its housing with a mortgage loan. There is actually no ceiling on how much a mortgage you can take. It is the value of the home and your own economy that determines how much money you can borrow.

Most people choose to borrow as much as they can. Just keep in mind that your debt will be less if you make a larger deposit yourself .

How to do this with the deposit

How to do this with the deposit

When signing the purchase agreement for its new home, you normally pay 20% of the value of the property in deposits yourself. At least 5% of these must not be borrowed money. This is not something that even the home loan covers.

To pay the deposit , you can do the following:

  • Use your own savings (recommended)
  • Ask the bank if you can take an extra loan to pay the deposit.
  • Take a consumer loan from an independent lender.

The most optimal is if you have a savings that can cover up to 20%. The minimum percentage your own savings should be able to cover is 5%. If you don’t have a savings that can handle the entire deposit, you can actually take a consumer loan to cover the 15% of the deposit.

Remember, it is always better to pay with savings because a loan always costs more in interest.

Get a better rate

Get a better rate

There are some tricks that you can use to get a better interest rate on your mortgage.

  1. Compare mortgage rates before taking the loan. It is not smart just to go to his normal bank, without looking at what the other banks can offer in relation to interest
  2. Bargain about the price. It’s actually not quite impossible to get a lower interest rate on your mortgage if you’re just trying. A customer who wants a mortgage is in high demand, as a mortgage is a big loan. That is why the banks are fighting a lot about these customers. Play the banks against each other by referring to banks that have a lower interest rate.
  3. Become a full customer at the bank. If you have a salary account and a card attached to the account, you are usually considered a full customer. If you are a full customer, you usually have better opportunities to get a low mortgage rate.
  4. Renovation and maintenance. If you recently renovated your home, your home will increase in value. Even if you have already taken out your mortgage, you may well have lowered the interest rate. Contact your home broker and arguments for a lower interest rate.
  5. Be sure to renegotiate regularly. Try to get used to renegotiating your loans once in a while. Every second or third year is just fine, as price changes in the market can make the home rise in value.

Deposits for mortgages

Deposits for mortgages

Mortgages are paid for monthly or quarterly, and the most normal is that you pay off on your home loan for 20-50 years. If you take a mortgage late in life, the bank rarely accepts that you pay off for so long.

If you take a home loan consisting of a base loan and a top-down loan, you typically pay off on the top-down loan for 10-15 years and the basic loan 20-50 years.

Mortgage loan repayments

Mortgage loan repayments

Once you have taken out a mortgage loan, you must pay it back monthly. These payments are your installments.

However, you have different options to choose from when it comes to the installment.

  • Non-repayable mortgage loans . In Denmark, it is possible to obtain a so-called mortgage-free mortgage loan. This means that there are periods of loan term that you do not pay off. During the grace periods , you still have to pay interest and contributions . This means that your short-term expenses will be significantly reduced, but as the loan does not decrease, interest expenses will always increase. This means that the loan will become more expensive in the end.
  • Annuity loan . If you choose an annuity loan, you pay exactly the same benefit every month or quarter, whether interest rates go up or down. It is thus a number of equal payments. Today, there is almost no home loan, which is repaid with annuity, it is largely only private consumer loans .

What is a mortgage?

What is a mortgage?

A mortgage loan is based on mortgage bonds . There are some investors who invest in these bonds. This means that you borrow the money from the mortgage bank, but in principle your provider will only find an investor who would like to invest the same amount that you would like to borrow.

If you want to borrow DKK 1,000,000, your mortgage credit institution will find one or more investors who would like to invest one million.

The more investors and borrowers there are, the lower the interest rate on your loan will be. So it is about supply and demand. The interest rate on mortgage loans is usually somewhat lower than other loans, which do not rely on these bonds.

Should I Choose Variable Rate?

Should I Choose Variable Rate?

Actually, there are no mortgage loans that have a completely variable interest rate that changes from day to day.

The variable mortgage rate changes interest rates every 3 months. In practice, the variable interest rate is thus fixed for 3 months at a time.

Benefits of variable interest rates

  • If you are dissatisfied with your bank’s interest rate, you can easily switch banks. You just need to find a bank that offers a cheaper mortgage and then contact them. If you are accepted as a customer, move the loan to the new bank.
  • You can pay out the loan at any time or make a larger repayment.
  • The variable rate on mortgage loans is almost always lower than the fixed rate when the contract is signed.

Disadvantages of variable interest rates

  • You risk becoming a victim of tough economic times if interest rates are to rise. A home loan is a big loan, so if the interest rate is high, it will also hit the economy hard.
  • Planning your economy is harder as interest rates can both go up and down. You never know exactly how high or low your expenses will be more than 3 months ahead

Should I Choose a Fixed Rate?

Should I Choose a Fixed Rate?

You can tie your interest rate anywhere between 1 and 10 years. You can even tie it for 3 months, but then it’s the same as taking a variable rate loan. How many years should you have a fixed rate? There is no single answer, since it is only after a certain period of time you know what had been best from an economic point of view. Here are Clyde Griffith’s recommendations.

Benefits at fixed interest rates

  • You can plan your finances better as you know exactly how much you have to pay off on your loan every month. It is really good if you like to plan and can put a good budget.
  • You will not be a victim if interest rates rise, which is of course an advantage. This means that you don’t suddenly get a surprise over the service and can’t pay the required amount.

Disadvantages of bottom rate

  • If you want to change bank, you have to break your old loan. It also involves paying a relatively large sum of money in redemption deductions.
  • You can change the bond period or change to variable rate before the current contract expires.

We recommend

  • Choose a variable rate if you have the economy to cope with higher interest rates. You will probably save money on it.
  • If your economy cannot cope with a large increase in interest rates, then choose a fixed interest rate.
  • Choose fixed interest rates if you want to keep track of your long-term expenses.
  • You should not have fixed interest rates for longer than you expect to live in the home. If you tie in for example 5 years and sell your property after 3 years, you must pay the redemption deduction to break the loan.
  • Do not bind the interest rate for 10 years, as many things can happen over such a long period. Do it only if the interest rate is record low, which a 10-year rate rarely will be.

Mortgage despite RKI

Mortgage despite RKI

If you have a payment note, it may well be difficult to take a mortgage of any kind. That’s something you need to talk to your bank about. If you have an old payment note but have been a good payer many years ago then you may well be able to take a mortgage, but it is not safe.

You should not set your hopes too high, but it is worth a try anyway.

Tips for choosing mortgage loans

Tips for choosing mortgage loans

  • Choose a variable rate if you have the finances for it. There is a chance that your loan will be cheaper by it.
  • Choose a bottom rate if your finances are not so stable. That way, you know exactly what to pay each month.
  • Keep track of the papers when you talk to the bank. Keeping track of your income and expenses is always a good idea so you know exactly what you can afford. This also gives you a good basis for negotiation.

Loan money fast – Compare now and save up to + 74%

Loan money fast – all about loans in Denmark

Loan money fast - all about loans in Denmark

Want to borrow money? Then you’ve probably already discovered that the loan market is large and unmanageable. Too few people properly examine their options before they borrow money and it is not difficult to understand.

It can be incredibly difficult to find the best place to borrow money quickly for you. Loan money fast through Werther! We have made it safe and painless to find the right loan. In this article we give you a full overview of the Danish loan market, so you avoid paying too much for your loan.

Loans with and without collateral – do you manage the loan market?

Loans with and without collateral - do you manage the loan market?

There are two main types of loans, namely collateral loans and unsecured loans. There are advantages and disadvantages to both types of loans. The majority of the loans you find at Werther are without security.

The article continues below the image.

Loans without security

Online loans are almost always unsecured loans. You do not need to own a car, house or other valuables that can be provided as a guarantee. You can use the money exactly as you want, without having to explain to what.

Therefore, these loans are usually more expensive than the secured loans. In return, there is greater freedom for you as a borrower.

features

  • Interest rate of 4-20%
  • Maturity of 1-15 years
  • Size of 5,000-500,000 kr.
  • No specific purpose of the loan

Types

  • Consumer loans. The consumer loan comes in all sizes. You can borrow DKK 5,000-500,000 for a period of 1-15 years. The loan type can be equated with private loans, personal loans and has even more synonyms.
  • Payday loans. A small loan, typically DKK 500-15,000, paid back over 15-90 days. These loans are paid out quickly and the requirements are easy to meet. This type of loan has several synonyms, such as SMS loans, mini loans etc.
  • Overdraft. A credit agreement, typically DKK 5,000-50,000, where you can regularly raise up to the agreed limit. You can both open a bank overdraft with your bank or through an independent provider.
  • Samlelån. A collective loan is a larger consumer loan, which is typically used to redeem a number of smaller debt items.
  • Car loans. There are also unsecured car loans. It is a car loan where you do not have to provide security in the car, and therefore it is the same as a consumer loan in theory. You can take this type of car loan if you want to buy a used or new car.
  • Mortgages. You can take a bank loan to fund the deposit for your home. You can finance up to 80% of the loan with mortgage loans, 5% with own money and 15% with the home loan.

Loans with security

Loans with security are used for a specific purpose, such as house or car. It is a requirement that an asset be made available in case the loan is breached. If you lend to a car, the lender often requires security in the car.

This makes the loan cheaper, so it is a good solution if you have a specific purpose for your loan.

features

  • Interest rate of 1-5%
  • Maturity of 5-30 years
  • Size of +30.000 kr.

Types

  • Mortgages. A loan issued for home purchase against real estate security. You can finance up to 80% of your home with a mortgage loan
  • Car loan. Issued against security in the car. At present, the cheapest car loan on the market is the car loan from Diba, which starts from 1.76% in debt rate and an APR from 3.19%. Read more about Diba here.
  • Guarantor loan. As security for the lender, a guarantor is liable for your loan. The guarantor pays back the loan if you do not. In this way, this person acts as an extra security for the lender. This type of loan is typically used if the borrower is in the RKI.

Advantages and disadvantages of online loans

Advantages and disadvantages of online loans

  • Great deals. The lenders compete for you as a customer. As a first-time customer you can, for example, borrow interest-free.
  • Low interest rates. The online lenders did not use to compete with bank interest rates, but today you can borrow money on the internet from 3.90% in interest. It is more than competitive.
  • Faster payout than the bank. When you borrow on the internet, you get your loan quickly paid out. You do not have to talk to a bank advisor first.
  • Painless application. You can handle the entire application process from your computer, smartphone or tablet. In some cases you are called by the lender.
  • Beware of quick loans. Although the number is falling, some are still caught in debt spirals. A quick loan has a short maturity and it is important to pay on time, otherwise the loan can become expensive.
  • Incredible market. There are a lot of online lenders, and there are only more. It is positive in terms of competition, but it also makes the market more difficult to understand for ordinary people.

5 good advice before you borrow money

5 good advice before you borrow money

The 5 tips are elaborated below the picture.

1. Compare first – it’s free!

If you do not know the different loans on the market, the likelihood of choosing too expensive a loan is very high.

Use our loan comparison to avoid paying too much.

2. Always get more offers – it’s also free

You first know the price of the loan when you stand with the offer in hand. Not everyone knows, but applying for a loan is both free and non-binding. This means that you can still refuse the loan even after you apply.

In addition, you actually have 14 days of right of withdrawal on loan agreements. So you do not run as much risk as you might think.

3. Consider the loan terms – APR, maturity and other

Should you choose a long or short term? What about grace months and APR?

The lenders are distinguished by different parameters. Consider what is most important to you before you borrow. Here comes a full overview.

Unique Terms Description
Quick payout Some loan providers offer immediate payouts while waiting for 2-3 business days with others.
Runningtime A short maturity means a higher performance, but a cheaper loan. A long maturity gives a low performance, but a more expensive loan overall.
Monthly payment Choose a loan provider that can give you a monthly allowance you can afford to pay.
Fixed rate In many cases, you will be offered a fixed interest rate, which is usually more expensive than variable. In return, it may be easier for you to plan your repayments.
APR APR is the most important key figure if you look at loans with a maturity of at least 1 year. There is a direct connection between the APR and the total price of the loan.
Identification with NemID Most loan providers identify you using NemID. Sometimes you also need to submit a passport, driver’s license or other ID image.
Customer service For most loan providers, you can call every weekday while a few are open on weekends.
Weekend payout A few loan providers also pay out loans on weekends and holidays. You can always apply for the weekend, but you do not always get answers before next weekday.
Loans to specific groups Self-employed and students are not always easy to take out a loan. Some loan providers focus specifically on these groups.
Redemption without fees It is not always free to redeem your loan without fees, so check it out before you borrow.
Depreciation-free months In grace-free months, you do not have to pay installments, but only interest expenses. It gives you a respite for certain months, but your loan becomes more expensive overall.
loan Insurance If you are the cautious type, you can purchase a loan insurance if you were to become unemployed or similar.

4. Become an attractive lender (increase your credit rating)

There are several ways you can increase your credit rating. In fact, we have written an entire article on the subject that you can read here.

To summarize the article, you can do the following:

  • Use the co-applicant. The fastest way to increase your credit rating is by applying with another person. Now both your economies are being considered. If you have an income of DKK 300,000 a year and your co-applicant has an income of DKK 350,000, your total income is DKK 650,000. It is a huge difference.
  • Add a budget. Show the lender that you are taking the repayment of your loan seriously. Then you can get a lower interest rate.
  • Repay debt. If you already have debt, it is harder to take out a loan. If you settle it, the price of your loan will fall.
  • Increase your income. If you can earn more, the likelihood of you defaulting on your loan is lower in the lender’s eyes. It gives a cheaper loan.

5. Remember your interest deduction

Do you have two loan offers, one of which has a low interest rate but high formation costs and the other has a high interest rate but low formation costs?

Then you have to choose the loan with high interest, because you can deduct the interest from tax.

You can’t do that with the formation costs and other fees. Some lenders automatically report your interest rates to TAX but not all of them.

Who lends you money?

Who lends you money?

Here you can read more about each loan provider. For a complete list of all loan providers and banks at Werther you can click here (updated automatically)

Who can apply for a loan? 

Who can apply for a loan? 

Not all people have a good enough economy to borrow money quickly. It is not without demands, just because you go by the bank.

However, the requirements are a lot easier than with the banks.

Here is a list of requirements that most loan companies make their customers. There may be differences between the requirements of the lender to the lender.

  • Requirements for age. You must be at least 18 years old. Some lenders have a higher age limit, for example, 20, 23 or 25 years.
  • Income requirements. Some loan providers make no demands, while others require that your household has an income of, for example, at least DKK 200,000.
  • Requirements for work. Some loan providers require you to have a permanent job or a fixed income.
  • Requirements for RKI. It is extremely difficult to take a loan in Denmark if you are registered in the RKI or Debtor Register.
  • Residence requirements. The vast majority of lenders require you to have a Danish address.
  • Requirements for NemID. The most normal is to identify and sign the loan with NemID.

You provide all this through the application process. The fastest loan providers make sure that you have the money in your account a few hours after you apply.