In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:

The prepayment penalty for commercial loans can be high.

Not only consumers are threatened with a prepayment penalty: for commercial loans even stricter rules apply than for consumer loans. Entrepreneurs must therefore be twice as vigilant when signing the contract.

The Withdrawal Joker is often referred to in connection with consumer loan agreements, but what about when bank-to-business finance has been completed? Is a prepayment penalty also for commercial loans threatened if these are terminated prematurely?

In this article you will find all the information on the revocation of commercial loans.

In a nutshell: Information about the prepayment penalty for commercial loans for fast readers

• The Withdrawal Joker does not apply to commercial loans.
• The amount of the prepayment penalty is not limited for commercial borrowers.
• Be careful when concluding a contract : As an entrepreneur, you are also considered a self-employed person – in principle, you can not revoke your credit.

Consumer or trader? A significant difference

A prepayment penalty is also possible for commercial loans.

German law pays particular attention to the right of consumers when they conclude legal transactions with professionals. For example, to exclude oversubscription, consumers have a right of withdrawal.

However, this particular caution falls away at the moment when two businessmen negotiate a contract with each other.

The exact definitions and characteristics of a consumer and an entrepreneur are anchored in the Civil Code (BGB):

A consumer is any natural person who enters into a legal transaction for purposes which are predominantly neither commercial nor self-employed. (§ 13 BGB)

Entrepreneur is a natural or legal person or a legal partnership that, in the course of entering into a legal transaction, acts in the exercise of its commercial or independent professional activity. (§ 14 BGB)

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:If you find that you have a consumer contract, even though you use a commercial loan, you can face expensive consequences.

This can be the case, for example, if you, as a self-employed person, receive a installment loan to finance a car that you only use for your work.

For entrepreneurs, no revocation is possible

If you are a lawful entrepreneur, you must be particularly vigilant when signing a loan. The option of a revocation is not open to you : The loan agreement becomes final immediately after the mutual signature.

If customers terminate commercial loans within the fixed interest rate – for example by making a termination – there is a risk of expensive prepayment penalties for the breach of contract. Here, the bank can make those claims into account that it was real because of the premature end.

Also, the profits, with which a bank could count on according to the loan agreement, may have to be compensated.

The amount of the prepayment penalty depends on how much the interest rates have changed since the contract was concluded, how long the contractually agreed fixed interest rate still has to apply and how high the residual debt is.

Avoid the prepayment penalty for commercial loans? Little options

Before signing, keep in mind: The prepayment penalty for commercial loans is difficult to avoid.

Since there is basically no right of revocation for commercial loans, it is difficult for borrowers to terminate such a loan prematurely without prepayment penalty. This is particularly annoying in the current context: the interest rates in Germany and Europe are as low as never before.

In the case of rescheduling it is therefore not possible to avoid the prepayment penalty for commercial loans. They buy the improved interest rate in this case expensive.

A ray of hope : Perhaps you can deduct the compensation paid from the tax.

However, if you sell a financed house and quickly acquire a similarly valuable property, you can prevent the expensive payment.

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

The moment you start living in rooms because you are studying, you often want to have a car for yourself. That is very handy if you have to travel to your parents with your dirty laundry. Today, however, it is less easy for a student to buy a car without having to squeeze financially in all sorts of turns. Fortunately, there are some loan and credit providers who want to provide a car loan to students. Thanks to the offer of this type of car loan, you, as a student, can still enjoy the benefits of having your own means of transport without worrying about the price associated with purchasing a car.

A car loan for students with assistance from your parents

A lot of students who would like to buy their own car today will often have to rely on their father and / or mother. Their parents will then guarantee the loan. Hereby they will donate part of their own income without having to worry about the possible aftermath of this. As soon as you as a parent want to ensure that your child can purchase a decent car, it is certainly advisable to obtain sufficient information in advance regarding the various options for taking out a car loan for students.

Among other things, a parent may decide to help during the search for an affordable car loan for a student. That way the chance is considerably smaller that you will be faced with unpleasant surprises afterwards. It is therefore wise for a student to always ask father or mother for advice and help if you are looking for the most favorable car loan for young people.

Involve parents in taking out a car loan for students

A car loan for students usually means that you can choose from several options. A car loan for students often seems very interesting, certainly for a young student who wants to use his own car. Yet it is always crucial that you carefully read all the loan conditions and rates of a car loan for students. The small print will, after all, be a source of information and tell you everything about the conditions and rates at which you can borrow money to purchase your own car.

The cost of a car loan for students

A large proportion of student car loans as currently offered are practically not much different from the regular car loans that financial institutions offer to their customers. Even with a car loan that is specifically intended for students, you have to pay off the borrowed money every month at a certain interest rate. Only when you have paid the final installment will the purchased car actually be your property. However, you should never forget that your own car, in addition to the loan that you have, involves a large number of other costs.

It will often be cheaper to take out an adapted car loan for students. The best thing to do is look for a formula where you can take out a car loan at the lowest possible interest rate. Moreover, it is often possible to take out a car loan as a student where you borrow more money than the total purchase value of the car. That way you can, for example, also purchase certain spare parts or extra accessories.

Who can take out a car loan for students?

A car loan for students is a very interesting way for students with their own fixed income to get some extra financial support. Another advantage of this type of car loan is, of course, that you can usually take out this loan without the need for a guarantee. Your own car will thus stand in an effective way for an increased degree of independence. If, as a student, you want to check whether you can also qualify for a car loan, you can:

• make an appointment at your own bank and inquire about the possible options,
• search online for a credit provider that offers student car loans,
• search online for the most affordable car loan for students that matches your personal and financial situation.

Commercial contract definition.

It is clear that this type of activity, is based on a contract, which must give several circumstances, to facilitate the operation, so one of the parties, who intervenes in the whole process, must be a merchant, in short, a company or individual, that at the time of performing the operation is exercising such activity, and on the other hand the product or good that intervenes in that process, are immersed in the commercial activity.

Characteristics of the commercial loan contract.

There are different contract alternatives, among which is the commercial loan contract, which can be found among the contract alternatives, among which are:

• Agency contract, by which a person, whether physical or legal, will assume the order of intermediation contracts, in exchange, for a fee, being the work required, that of promoting through its operations, the commercial transactions that are fix the agreement that is established. Both parties have established a series of obligations, which must be addressed by the two parties involved.
• Commercial Partnership Contract, in which a natural or legal person, fix some contributions to try to reach an established purpose, intervening in this contract, the partners, the contributions that are going to be carried out, the reason why it is going to constitute society and, obviously, the objective they are set to achieve.
• Commercial Loan Contract, by which it is delivered, or a good or an amount, from one party to another, always fixing the return thereof, in a period fixed in advance by both parties. This section also includes the Loan agreements between individuals and the Fast Mini-Online contracts.
• Swap Agreement, in which both parties, intervening in this contract, are obliged to give and receive what they agree. Between them they will be forced to deliver the agreed, either money or a good, being a way of exchange, used for a long time.

In this type of operations, of granting loans, by mutual agreement, there are three well-defined modalities, depending on the object, that is being used in the agreement, and for this reason we can speak of three well-differentiated loans, if one has as object money, securities or securities, or on the contrary the commercial loan, in which the good that is being used is an item in kind, being in all cases the return of the item replaced in the same “material”, of which borrowed, although in the latter case, if a good similar to the borrowed one could not be returned, an economic compensation equivalent to the value of that object must be returned.

Within this commercial loan contract, the parties intervening in it must be clearly differentiated, both the Lender and the Borrower, including in the document that is going to be made, the data of these two parties, as well as all the characteristics of the operation that is going to be carried out, among which must be included, the property loaned, as well as the term of return and whether or not it bears any type of interest, this loan operation.

The main characteristics, on which this type of operations are based, are based on the existence of a real contract, with which there is a delivery of a good, being a unilateral relationship, since a series of obligations are generated for the borrower, since a return must be made of the one agreed upon in the contract, in addition to being a non-formal type of contract, although it is true that the validity of the operation is subject to being carried out in writing, mainly due to the fact that they can generate interests that should be reflected in the operation.

This type of operations are regulated by the Commercial Code, which is in Article 311, and later where it is detailed, how it should act, establishing the legal action of this type of contracts, so that both parties know at all times, what are their rights and obligations, for the operation they are carrying out, above all must pay attention to the conditions that are established in it, in terms of time and the amount fixed or loaned.

It is important to make clear that the loan, if it were in urgent money, will have to be returned, in the amount received, evidently with the legal value that was had, although if the loan that has been made is in securities, the refund will be will do in the same titles, taking into account that if in the end one chooses to make a loan in kind, it is clear that the species must be equal to the loan.

Within this commercial operation, if a refund time is not set, it may be requested to return it once 30 days have elapsed since notification is given that the loan should be returned by notarial request, bearing in mind that it will not accrue any interest rate, if the opposite has not been indicated in the pre-established contract, but if an interest for the signed loan has been fixed, it will have to be satisfied, always within the term established by law.

In short, a commercial loan contract is defined mainly by the formalization of a certain amount of money concession or in its absence, for which one of the parties commits to return in the same manner in which it was delivered. that loan, the amount borrowed, fulfilling the agreement in the contract that will be written to record the operation that is going to be carried out between the lender and the borrower.

Despite the credit crisis, there were also good times for homeowners. For example, home owners could benefit from a low mortgage loan rate. But that low interest comes to an end. In fact, according to the DNB (De Nederlandsche Bank), the lowest point has already been achieved! The interest rate has risen slightly since a few weeks. Expectations are that mortgage loan rates will continue to increase this summer.

 

From 2012 onwards, the decline started well

 

In 2012, the relatively high interest rates on mortgage loans came to an end. From that year until the end of 2016, the interest rate fell to around 2.4%. In short: a significant drop of no less than 2%! In June 2017 it rose again slightly by 0.01% to 2.41%. From July 2017, interest rates appear to rise slightly faster.

Households have let the interest rates fixed massively

It had already become clear in recent months that the lowest point had been reached. Soon more Dutch households secured the mortgage loan interest for several years. The figures certainly do not lie: From 2016 to 2017, more than 3/4 of the households have taken out their mortgage loan for a longer period with a fixed-rate period. Interest-free period of 15 years have long since become an exception.

For comparison:
In 2012, 2013, 2014 and 2015, only half of the mortgage loan loans consisted of a fixed-rate period of 5 years or longer.

Long lock for a higher interest rate

Who fixes his mortgage loan for a long period (for example 15 years), who pays a higher interest rate. The shorter the fixed-rate period, the lower the interest rate. The DNB also noted that the banks in the Netherlands have provided much more mortgage loans for a long time. The mortgage loan debt has even increased in total!

Inflation

Inflation is also slowly but surely returning now that economic growth is increasing. In itself a good sign. A sign of recovery. The expectation is that interest rates will be raised again in 2018. Who wants to buy a house must be quick. And with the scarcity on the housing market you pay the main price anyway.

 

Average rate 30 years fixed 3%

At the moment, the average rate for a mortgage loan with extremely long fixed-rate period of 30 years is just over 3%. And there are certain providers where you pay only 2.6% interest. That is what Hypotheekshop reports.

 

Why do long-term interest rates fall on mortgage loans?

Why do interest rates fall on long-term mortgage loans? That is because the interest rates on the capital markets are getting lower again. This allows banks to buy cheaper savings. Incidentally, the interest rates for the slightly shorter fixed interest periods are still relatively high. At least, higher than that for the longer fixed-rate period.

 

A few tense difference in monthly costs

If you take a fixed-rate period for your mortgage loan of 30, 20 or 10 years , the difference in monthly payments can be a few tenner. It does not make much difference how long you keep the interest rate fixed.

 

Do not immediately set your interest too long

Are you planning to buy a property soon, or to convert your current mortgage loan into a new mortgage loan? Many experts point out the dangers if you want to opt for a maximum fixed-rate period. After all, you are really stuck with that period. If you intend to relocate within a few years, choosing a long or maximum fixed-rate period will make little sense. Choose a fixed-rate period that suits your future plans.