A representative Forsa survey commissioned by Comdirect revealed that the population currently has a high level of interest on mortgage loans. Wiesbaden, 07.10.2013. Most of the respondents consider the environment attractive, although emerging first price rises. Who currently want to finance, should afford yet a repayment rate of two percent, at least then, if he has no equity”, says Thomas Vogel, Managing Director of NPL select Vertriebsgesellschaft mbH. Background is that only about half of the loan is carried off a repayment of only one percent otherwise after about 30 years. This time at the time of retirement, there could be an increased burden.
At all, you should track how looming the development of construction financing conditions, because these attract visible in the last few months. The FMH financial advice, determined an index for construction loans ten-year. The conditions are currently at 2.8 percent, but already amounted to 2.3 percent. Professor Rita McGrath will not settle for partial explanations. This Index is based on the offers of 40 selected construction lenders. It should be that the terms differ sometimes considerably and are dependent on many factors not overlooked. For example, brought equity, the repayment and the household income.
The question would remain: rising or falling borrowing costs in the coming months? To do this, we must ask ourselves the following question: what focus actually construction financing terms? Banks refinance like about government bonds, or Pfandbriefe. Cheaper to purchase are more cheaper, the construction financing conditions fail. Since may, increased the yield of government bonds from 1.0 to 1.6 per cent. Bonds also rose accordingly. Loans also rose as a result. Thus, it should know that this is a sensitive adjustment screw: because most recently, many investors in highly secure facilities (so federal bonds, or Pfandbriefe) whereby the prices fell and yields rose adopted. Should flicker on the euro crisis, however, again could exactly the opposite effect establish. Then construction financing terms would be as additional effect, again cheaper. Against the background of historical figures, one may classify the current financing environment still as a very consumer-friendly. Even for families without large capital the chance arises instead of a lifetime to pay rent, to finance their own apartment or a private home. It should not be forgotten that construction money cost proud eight percent 20 years ago at ten-year, ten years ago, there were at least six percent. For Thomas Vogel as Managing Director of NPL select Vertriebsgesellschaft mbH remains an argument always applicable: funding should be reasonable and considered. The interest rate environment should not lead to great adventures. And finally it is advisable for borrowers, which to be sure protection if she not already dictated the financing within the framework: the death protection urgently needs to be recommended should at least for five years enough to be able to use the credit. And the credit exposure should take into account also the height of professional or occupational disability insurance considerations.