When should you think of an interest-only loan?

Due to the increasingly expensive life, it may be worth considering taking out an interest-only loan. When taking out a loan, the installments to be paid include an amount for both interest and repayment. The monthly obligations can often be high if you have borrowed several small amounts in the past, sometimes only by applying for a credit card. All too often, people don’t think enough about the costs that you may have to deal with when borrowing money. There are also apparent fears about taking out a loan and people are looking for ways to borrow without checking the personal details at the BKR. With borrowing money again and again you yourself are to blame for the accumulation of obligations and the risk that something can go wrong with the timely installments.

Calculate a repayment-free loan

Calculate a repayment-free loan

Make a calculation for a maximum loan based on the total income and the fixed costs, excluding the costs for the current loans and under existing obligations. If you are going to compare this for several loans, you will not have to be amazed at the outcome of the calculation of how much I can borrow. By switching to the form of an interest-only loan, the monthly costs can go down enormously, this is only possible if the BKR does not receive any negative information after an assessment. You can compare the forms to borrow as much as you want, borrowing with negative BKR codes does not entitle you to the most advantageous types of credit.

Other forms than the interest-only loan

Other forms than the interest-only loan

As with other forms of credit, borrowing without a BKR assessment is not possible when applying for an interest-only loan. Exceptions are a number of mini loans that can be taken out, which means that the loan must be less than 1000 euros. You will soon see that an interest-only loan can be taken out in multiple forms than just taking out a cheap revolving credit. A WOZ credit is an exemplary way of borrowing money cheaply. You can say that you were then able to take out the cheapest revolving credit that could be traced between all offers. All existing loans, the personal loan, the revolving credit, debit positions on your current accounts and the amounts outstanding on a credit card, together form part of a completely new repayment-free loan.

Can you save money with an interest-only loan?

Can you save money with an interest-only loan?

After having compared all the options for borrowing, having made the choice to borrow through an interest-only loan, all current loans will have to be canceled. The canceled loans will have to be repaid in total, including any costs and penalties for early repayments. After the repayments have been made, the lender will have to cancel the loan with the BKR. The new credit will also be registered with the BKR, including in most situations an end date of the agreement concluded. You yourself have to be alert to an end date to be specified in an interest-only loan, which is then a date on which you will have to pay the total loan amount in one go, sometimes even after 30 years.

So you see that an interest-only loan does not mean that the loan sum never has to be repaid. You often do well to make provisions in advance to pay back the loan at the end date. If you have taken out a WOZ credit, you can redeem when your house is sold. If before the end date the loan has not yet been repaid and the house has not yet been sold, you will need to request an extension of the loan. Applying for an extension of the end date on an interest-only loan is not always possible for everyone and an annoying risk can arise from this form of credit. Even if there is surplus value on your house on the expiration date of the loan, banks cannot just take out a new loan if it turns out that your income is insufficient, or that you then receive a certain payment or that people in that situation borrow with BKR codes cannot justify. Depending on your own situation, you can therefore think of an interest-only loan.

Leave Comment

Your email address will not be published. Required fields are marked *