Clarification on the new EU property guidelines
With the entry into force of the new EU directives, which should regulate real estate financing, it was particularly difficult for young people with families, pensioners and the self-employed to obtain a real estate loan. Collateral was no longer included in the credit check. Only the regular income was considered crucial for the successful application for a real estate loan. Loans for renovation measures also fell under this regulation. Now, however, clarifications from the Bundestag follow.
Problems of the new directive
The new EU residential property directive came into force about a year ago. These should protect borrowers from over-indebtedness. On this basis, many lenders, like in-house banks, were of the opinion that the values of existing properties should not be taken into account when checking the creditworthiness. In addition, the assumption has spread that borrowers’ income must be sufficient to repay the loan during their lifetime. However, these assumptions are currently no longer correct.
Real estate value in creditworthiness
It was decided that the real estate value may well be included in the test. The exact criteria would still have to be laid down in the legal regulation. The Federal Ministry of Finance and Justice wanted to work this out before the general election. This should also give older people who have to finance a renovation measure the opportunity to have a positive credit check.
Find cheap loans
Since many property owners can now breathe a sigh of relief and can access loans for financing in the foreseeable future, we would like to suggest that you do not conclude a loan contract directly, but use our comparison calculator. This not only gives you a variety of offers. Rather, you can choose the cheapest loan provider. All you have to do is specify the loan amount and the term. The reason for the loan request may be asked. At this point you can specify a real estate loan with one click.
Not only can you finance a new property or renovation measures, but you can also save on repayment rates.