Mortgage Loan: More and more Germans lend their belongings
Mortgage lending is booming, although interest rates on installment loans have fallen significantly. The pawnbrokers are also expecting good business in 2013, even though the drop in the price of gold is making themselves felt in the sales.
More than one million customers will take out a loan in German pawnshops in 2013: The Central Association of the German mortgage lending industry expects a report of the “world” according to 2.10 million concluded contracts. It is not uncommon for many customers to take out a loan against a pledge several times a year: Mortgage loans are often used in a similar way to a discretionary loan.
500 million usd loan volume
The loan agreements will have a volume of 500 million usd in the opinion of the industry association. This stagnates the sales of the industry, which, however, is also attributable to the weak development of the gold price compared to previous years. The mortgage lending values of jewelry and many other objects deposited as depositors are based on the price of gold.
Mortgage loans are not cheap, but they are a simple solution for short-term cash needs, if appropriate depositors are available. The monthly (!) Interest rate is 1.00 percent, which makes mortgage loans just as expensive as disposition loans. In addition, borrowers must pay fees for the storage of the pledge. According to the industry, in less than ten percent of the cases, the deposited deposit will be auctioned. This threatens if the loan is not repaid in time and the pledge is triggered again.
Gold price surge acts like interest rate cut
Mortgage lending is popular with many consumers and entrepreneurs because it is easy and quick to obtain and does not entail any further economic consequences beyond the pledge. As there is no report to the credit bureau and the database of the credit agency is not inquired, mortgage loans are available even if the credit rating is damaged.
Banks are unaware of the loan. From the borrowers’ point of view, installment loans are, in many cases, limited to substitutes for collateral loans the decline in interest rates in the classic lending business has therefore hardly made itself felt.
Loans without credit bureau instead of mortgage
In recent years, Germany’s Pfandhuser – nationwide about 200 – repeatedly reported a good business development. This should have been helped by the boom in the gold market, which has now been interrupted for the time being. As the price of gold rises, so does the mortgage lending value of the items, which are usually used as a pledge.
An alternative to pledge loans may be loans without credit bureau, which are also not reported to credit bureau or other credit bureaus and do not affect the lending relationship with other banks. The costs are lower than those of mortgage lending, the processing time is about one week longer. Loans without credit bureau are only possible for employees with a secure employment relationship and require a sufficiently high, earning income. The better alternative to the mortgage loan are the z. For example, loans available through intermediaries such as us, in particular, if there is a personal connection (eg inheritance) to a potential pledge.