February 8, 2021, 9:29 a.m.
–
Flamatt – The current shutdown in Switzerland will run until the end of February for the time being and many people are also suffering financially from the pandemic. FinanceScout24 asked its financial experts which topics our customers were particularly interested in in the mortgage and credit sectors in the past year and gave three financial tips for 2021.
The last 10 months have been very turbulent in many ways. Mr and Mrs Swiss also had to suffer a lot in the 2020 pandemic. There were drastic changes, especially in the financial situation: In addition to unemployment, insolvency, short-time work and using up savings, many people in Switzerland were sometimes involuntarily concerned with the topic of finances. Our credit specialist Angela Lopes and our mortgage expert Michael Bader share their tips.
Expert tip 1: credit despite short-time work?
Short-time working is included in the credit check and may deteriorate the creditworthiness. “However, if you know how long this will take, it is advisable to make the request only as soon as you have received a pay slip without a note of short-time work,” advises Angela Lopes, a credit specialist at FinanceScout24. This makes it easier for lenders to assess the risk and increases the chance of a commitment. Another possibility is, for example, to take into account the income of the spouse in order to optimize the income situation. This also has a beneficial effect on the calculation.
“Anyone who has a loan and is suddenly affected by short-time work can minimize their monthly payments by renewing the loan agreement – provided the financial institution allows short-time work and the income situation allows it,” explains Lopes. Borrowers have to send a new request to their bank for the remaining balance and for a longer term. “Of course, it can also be another credit institution. However, caution is advised here: Not all banks grant a loan for short-time work, so it is worthwhile to seek personal advice, “says Lopes.
Expert tip 2: Payment protection insurance as prevention
For future borrowers, there is the possibility to secure the loan installments by taking out installment protection insurance. If, for example, Corona results in involuntary unemployment or inability to work due to illness, the insurance will cover the monthly loan installments over a certain period of time.
These are used to pay the premium for the installment insurance. Depending on the provider, between five and six percent of the monthly rate is due. “But here too, waiting times and waiting periods play a role. Individual advice is therefore worthwhile, ”explains the credit specialist. “The good thing is that the insurance premium does not change over the duration of the loan agreement and benefits already drawn cannot be reclaimed by the insurer.”
Expert tip 3: Interest rate outlook for the mortgage market in 2021
The coronavirus determined many areas of daily life in the past year – including the mortgage market. The situation has not eased in 2021 and, especially during the renewed shutdown, many FinanceScout24 customers are asking about the development of mortgage interest rates.
“Despite the current slightly rising interest rates, we still have a low interest rate level with very attractive interest rates: A 10-year fixed-rate mortgage is already around 0.70 percent – provided you have a good credit rating and an initial mortgage,” explains Michael Bader, mortgage expert at FinanceScout24. “Nevertheless, this should not hide the fact that, despite the loose monetary policy of the central banks, we are still living in a very sensitive interest rate environment, as shown by the renewed rise in mortgage rates since the end of January.” These had remained at a consistently low level for many weeks and at the beginning of the year.
“The fact that interest rates are now rising again could be a reaction to the decline in bond prices from mid-January. In contrast to the well-performing stock market, these also fell significantly during the first lockdown, “emphasizes Bader and adds:” If the prices of bonds fall, interest rates rise in return. That could be a first indication that the long-term consequences of the lockdown are being taken seriously and that loan defaults due to expected company bankruptcies are expected. “
There are even more tips from Angela Lopes and Michael Bader in the expert interview financescout24.ch. (FinanceScout24/mc/ps)
–
