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Mortgage loan for the purchase and finishing of an apartment

The combination of a mortgage and a flat finish is currently the most popular solution among people who decide on their own property. So what is the whole process of granting a loan and what should be remembered when going to the bank for a loan?

 

Financial liquidity is a key condition

mortgage loan

Before the bank grants us a mortgage in the required amount, it must check our financial liquidity, in other words, how much expenditure we have each month, and how much income and whether we can afford to pay the loan installment in a calculated amount. Mortgages have a very long repayment period, which is certainly something everyone knows and counts on the fact that a specific installment will accompany it for the next 25-30 years. In addition, everything also depends on how the economic situation will look like in the coming years, as well as whether we decide on a foreign currency mortgage.

 

What does the mortgage payment look like?

What does the mortgage payment look like?

When financial liquidity issues are over, it’s time to explain how the bank most often pays out mortgages. We decided to take out a loan for the purchase of real estate and its finishing, so the bank will transfer part of the loan that is intended for purchase to the seller’s account, while the part intended for finishing will transfer to the client’s account. This is practically always the case and it does not matter whether we buy real estate from the secondary market or straight from the developer. It is also worth emphasizing that the part intended for finishing is most often divided into tranches, and not paid in full by one transfer. In this way, banks want to control whether money is spent in accordance with the cost estimates provided by customers. In the case of lower finishing loans, the bank may divide the entire amount into two tranches (not necessarily equal), however, in the case of much higher amounts, the bank may have divided them into 3-4 tranches. Therefore, you should be aware of the fact that the entire amount for renovation will not appear immediately in our account.

 

Mortgages – own contribution issues

Mortgages - own contribution issues

Of course, the issue of own contribution, which is always required by every bank, is also very important. Recently, the amount of own contribution required by the bank is increasing more and from now, it will reach 20% in the next few years. However, for the purposes of this text, let us assume that the bank is demanding 10% own contribution from customers. This means that borrowers must be the amount of 10% of the own contribution for the purchase of an apartment + 10% of the own contribution for finishing! Assuming that the purchase amount of the property is $ 300,000, then the customer must have $ 30,000 own contribution. For this we also want a mortgage for finishing in the amount of $ 50,000, so we still need $ 5,000 (or 10% of $ 50,000). A significant proportion of customers are not aware of this fact and how the bank calculates the amount of own customer’s contribution, which is very important.

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Student loan in the UK – how does it work?

For many people, studying in the UK is a dream come true. Unfortunately, the tuition fees are very high, so not everyone can afford them. Does the lack of money mean that we have no chance to study in the UK?

The British system of higher education is considered one of the best in the world. It ranks second in the world ranking, just after the United States. There is a reason why so many people, including Poles, are thinking about starting their studies at one of the British Universities. Graduation in the UK can give us more prestige and help us find a job, both in the UK and in Poland. However, it is no secret that it costs a lot to study in the UK. By undertaking studies in the UK, we will have to face not only high fees for tuition, but we will also need money to support our studies. However, if we don’t have money for tuition, do we have to forget about studying in the UK? Not necessarily. The British government meets all potential students by offering student loans. How do they work What do you need to do to get them? What does the loan repayment look like? You will learn about this in this post.

How does a student loan work?

How does a student loan work?

If you are applying for admission to the UK, we can apply for a government student loan. The loan is granted to people starting their studies in the UK without checking their credit history or guarantors. Such credit does not burden our family and does not affect our creditworthiness. The loan is granted for all years of study in a given field, plus one spare year if we had to repeat one year of study. So in the case of undergraduate studies, we would get a loan for 4 years – 3 years of study and one spare year.

Importantly, the loan does not affect our account, but is transferred directly to the university where we study. If our loan application is accepted, we will receive a confirmation letter when the money will be credited to our university’s account. Usually the loan is paid to our university in several installments.

Of course, you will have to pay back the loan, but we only have to pay back the loan when we start work and our earnings reach a minimum of $ 2,143 a month. We will repay the loan only when our earnings reach this level. As part of the repayment, 9% of each month will be collected from our salary. Also when returning to Poland, we will have to reach a certain ceiling before we have to start paying off the loan. This threshold is about PLN 4,000 a month.

What conditions must be met to get a student loan in the UK?

What conditions must be met to get a <a href=student loan in the UK?” />

A student loan can be taken by anyone who is a citizen of the European Union, who has not yet started undergraduate studies at a public university and who does not have a bachelor’s or engineer’s title from a public or private university.

However, if you have already started studying in the UK, you still have a chance to get funding. In the case of persons applying for a loan in the first year of study, they may be granted a loan, but it will not cover the additional year. Similarly, if we are in the second year of studies – the loan will be granted to us for the years remaining until graduation, excluding the first and additional years.

Can we apply for a loan if we want to start MA studies?

Can we apply for a loan if we want to start MA studies?

Yes, it is possible, although it will be a different type of loan. However, in both master’s and bachelor’s studies, we can use the loan to pay tuition fees and pay it off only when we find a job with the minimum remuneration required. You can find more information on loans for Master’s students here.

What if we change our minds and want to drop out?

What if we change our minds and want to drop out?

If we want to cancel our studies before the beginning of the academic year, the loan will be canceled and we will not have to pay it back. If, however, you resign from studies during their duration, we will have to repay only the part of the loan that has been credited to your university’s account so far. Also in this case, the cost of the loan will be deducted from our account, at the moment we will earn at the appropriate level until the entire debt is settled.

Can we use a loan to cover living costs in the UK?

Can we use a loan to cover living costs in the UK?

Student loans do not go through our hands – it is transferred directly to our university, so we are not able to spend it on anything other than tuition fees. However, if we are not able to work during the studies and we do not have sufficient resources to support and cover all living costs during their studies, we can apply for the so-called mainteinance loan. Such a loan will provide us with livelihood during the academic year. The maximum life loan you can get is $ 8,430 a year if you live outside London, or $ 11,002 if you live in London. However, the exact amount that can be awarded to us under the student loan depends on the earnings of the student and his parents. The terms of paying off the loan for maintenance are identical to those for student loans.

Everyone can study in the UK

Everyone can study in the UK

Each of us has the opportunity to study in the UK, regardless of our earnings. Student loans and grants offered by the government have been designed to enable anyone to earn a university degree, not just those who earn enough and have a British passport. Low earnings do not mean that we have to give up our dreams of studying in the Islands. We always have the option of using one of the financing instruments. To find out more about studying in the UK and financial options, visit this page. We will find there all necessary information.

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Money Lending – Quick Loan

money loan

Money is a commodity like any other. In different ways, one tries to make as much money as possible on borrowing money, and this is supported by high interest rates that have not declined for years. Citizens’ complaints come from all sides, mainly because citizens abroad pay lower interest rates, up to three percent.

People are hoping that borrowing money from the outside will offer them more favorable terms and turn to suspicious organizations that do not have a work permit approved by the Croatian National Bank. When borrowing money, care should be taken to ensure that matters are regulated legally so that problems and concerns are avoided later. Money lending is often paid off as expressly as loans on the same day.

Fast money lending

Fast money lending

Borrowing money involves borrowing a small amount of money with a short repayment period. It is an extremely good option in an emergency when money is needed on time. A quick loan of money is paid out on the same day as the application is submitted.

Considering that they are small sums of money, up to several thousand kuna, an online copy of the ID card and current account, as well as the completed form and the contract are to be downloaded from the websites of the selected credit institution. No certification is required from either the employer or the notary.

Lending money to family and friends

Lending money to family and friends

Family members or friends who can in no way refuse to borrow money from banks and credit houses, often turn to their loved ones for help. But it can be a double-edged sword because money has destroyed even the most complex of families. So if someone close to you wants to lend him money, he needs to make a plan to borrow the money.

Similar to borrowing money from a bank or lender, it is recommended that you draft a contract that will regulate the repayment plan. It is best to enter in the contract the date on which the money loan was paid, the amount, the repayment method, the interest rate and the repayment period. If you are unsure how to draft a contract, you can seek the advice of a financial professional or lawyer. It will help you to regulate everything properly and formally resolve the money lending. The contract must be certified by a notary public.

If you are thinking that this does not sound at all friendly, keep in mind that you only want to protect yourself from possible inconvenience if the other party will not be able to repay the loan. You do not want a loan of money to create additional financial problems.

Lending money in the business world

Lending money in the business world

Money lending is common in the business world. Companies borrow money from each other, the owner invests in their company, but companies also lend money to their employees. Money is so constant. When starting a business, it is important to have sufficient capital in addition to a good idea. The lender can lend money to the company himself. This is considered an investment in the company and is regulated by law.

If the owner is unable to lend to the firm, the firm can borrow the desired amount from another firm and thus the loan can be paid off. In contrast, when a legal entity lends to a firm, in this case, when the firm lends money to another legal entity, there is no mandatory statutory interest rate of three percent. Money can be borrowed and there is no minimum interest rate to be satisfied.

Borrowing money from the company

Borrowing money from the company

However, if a company lends money to an employee or business owner, the minimum interest rate may not be less than three percent per year. It is the interest rate that a legal entity is subject to when lending money to an individual. If it is lower than the above three percent, it is considered a benefit to an employee who would not otherwise make that profit and should be taxed.

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The best cash loan – how to get it?

money loan

Regardless of which loan we are looking for, what amount we want, it is worth comparing all offers available on the market. The best cash loan should not only be the cheapest, but also offer many additional options. So what to look for and how to get a loan?

 

The best cash loan – where to start?

The best cash loan - where to start?

More and more banks are offering very attractive loans to their clients, without requiring many formalities. No wonder they attract such a wide range of interested parties. Unfortunately, there is no single best cash loan for everyone. However, there are universal parameters that are worth considering and looking for the right offer based on them. First of all, you should think about the purpose for which you plan to take out a cash loan. The conditions will depend mainly on what amount we need to implement it. This is a key issue, because if the amount is too low, we will not be able to achieve the goal. However, if we take too much, higher installments will unnecessarily burden our household budget. So let’s consult your choice with an experienced expert who will thoroughly analyze your financial situation and look for offers tailored to your options.

 

Pay attention to interest rates and additional fees

Pay attention to interest rates and additional fees

Everyone, regardless of how much they earn, can apply for a cash loan. The conditions are set by the banks themselves. The same applies to the customer’s creditworthiness, which is assessed individually. A person who has low earnings, but has no obligations and has repaid all payments on time so far, has a better chance of a loan than a person who earns more but is in arrears with other installments. It is worth analyzing all your financial obligations and settling arrears carefully before you go to the bank.

When searching for suitable offers, it is worth paying attention to whether they have hidden fees. In the case of a cash loan, the interest rate is extremely important, because it depends on the value of the amount that we will have to pay back. Often, offers made available without commission have a higher interest rate than in other loans. It is similar in the case of loans without interest, but here one-time high commission may appear. So it’s also worth considering interest, APRC and other collateral to know exactly if it’s the best cash loan for us.

 

Credit insurance – is it worth it?

Credit insurance - is it worth it?

Insurance is available for most loans, but it does not always increase their cost. It is worth checking if buying a policy does not significantly affect the final cost. Due to many random accidents, such insurance can guard us against events that prevent you from paying your debts, such as illness, accident or death. The repayment period and loan amount are parameters that can even increase our credit standing.

Ultimately, the best cash loan is one that will help us achieve our goal, will not burden our household budget and will not generate difficulties or additional fees when settling the obligation. The condition of receiving an attractive offer is proper verification of all parameters and cooperation with an expert who will pay attention to all hidden costs.