It is intended for people who do not qualify for a building loan. Intermediate credit is only suitable for housing financing in some cases. It is much more expensive than a building loan or a mortgage.
International Credit means only a temporary (bridging) loan that lasts until the regular building loan is granted. At the beginning, the building society will provide you with the entire target amount no matter how many own resources you already have.
During the entire international loan period, you only pay off the interest that makes it much more expensive. You will only start repaying most of the loan at the construction loan stage.
Conditions for obtaining International Credit
Conditions are much finer than building loans. But they are still a little more complicated than mortgages, and many people are discouraged by the International Credit.
You can apply for an intermediate loan as soon as you have a building savings contract. There are no time limits for the duration of the contract.
You build a building saving, you have nothing saved there and you want an international loan. Yes, it is possible and it sounds tempting. You have to save money anyway, only later.
In addition to the interest repayment, you need to save on the building savings account. You need to save until you save the agreed percentage by optional allocation.
The higher the ranking number, the more you get into the building loan and the less you pay on interest. Also, with a higher ranking number, you can get better credit terms.
In extreme situations, it is also possible to apply for an intermediate credit with a zero rating number. For more information on the evaluation number, see the Building Credit section.
Demonstration of income
You need to document your income almost always. The exceptions are inter-bank loans to other banks. There is a good payment discipline and a clean credit register.
But another condition is a guarantor. The guarantor is also needed for classic international loans, unless there is a real estate guarantee.
It is a condition for higher loans. Somewhere is the threshold of 20,000 €, somewhere lower. In cases where security is not required, a guarantor is required. If real estate collateral is used in the same case, not only is there no need for a guarantor, but an interest rate is also preferred.
Amount of interest and repayments
The amount of interest and repayments depends on the tariff chosen, the amount saved, the rating number and the collateral (guarantor or property). In principle, international loans are more expensive than building loans and average mortgages.
Interest rates range from 5.6 to 7.8% pa. Building societies favor interest rates for clients that they conclude and incur life insurance.
Occasionally marketing building savings confuses citizens with stock quotes where interest is more than interesting at first glance. In fact, these low-interest rates only apply for a very short period and then they turn into the standard.
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