What are the requirements for you and your income for a mortgage loan?

If you are going to borrow money to buy a home, whether it is a house, apartment or something else, an income will be required. The question then is how big this income must be for the lenders to approve lending money?

Unfortunately, there is no simple answer to this question as it is very dependent on how much money needs to be borrowed. It goes without saying that anyone who wants to get a mortgage of 3 million needs to have a better income than someone who has only intended to borrow half a million. The interest rate for a loan of USD 3 million would be USD 12,500 a month before deduction if the interest rate is 5%.

For the loan of half a million, the corresponding sum would be about USD 2,100 a month.

For the loan of half a million, the corresponding sum would be about USD 2,100 a month.

It is also not only the income that affects the possible size of the mortgage, but most of what has to do with your own finances can affect the terms of your loan. Then we talk not only about obvious things like payment notes but for example how much money is saved, existing debts and the like.

If you want a better idea of ​​what you can possibly borrow, the best tip is to visit the big banks’ websites.

If you want a better idea of ​​what you can possibly borrow, the best tip is to visit the big banks

There it is not uncommon for there to be quick forms that you can fill in which give an estimate of the possible size of the mortgage.

You can also read on various forums where individuals discuss this topic and what they themselves have received for loans and what income they have, etc. However, there is always a risk of relying too much on such forums because it is about individual cases and there is always some uncertainty. Such numbers can be inaccurate and, above all, they may not match what you can get when you borrow.

However, if you choose to do a quick check with a bank or lender, you may not be able to borrow as much as the first check says.

money loan

If you decide to go ahead and take out a loan promise, you can get a slightly better picture as you do a more thorough credit check at this time. Then you get a slightly better answer to this question. However, a loan promise only applies for a specific period and if you wait longer than that, it is conceivable that your finances have changed and that you can then only borrow less.

Vacation Savings: Savings Account with Payment Plan

Traditionally, money is saved, for example, in a savings account or a fixed-term deposit account. In addition, Aurinkomatkat-Suntours has holiday savings offered by E-money, the purpose of which is ultimately to buy, as the name implies, the long-awaited vacation. Saving begins by setting a target amount for saving.

Savings can be rewarded with a discount on the trip, up to a maximum of 5% of the savings target. Savings can last from 6 to 24 months, from half a year to two years.

A marketing trick or just the right savings?

A marketing trick or just the right savings?

It could be a marketing push to present the Installment as a Savings Account. Normally, once the installment agreement is made, you will have access to the product or service immediately. Usually interest is also charged on installment payments. In this case, payment will begin before the service or product is available. In addition, there is no interest on the payment, but in fact it is paid! Maybe this is savings anyway. To someone else’s account. And stopping it costs.

Win-win-win

bank

On the face of it, this seems like a win-win-win situation. E-money wins, Aurinkomatkat wins and the customer wins. Aurinkomatkat-Suntours does not issue travel tickets until it has received money from E-money, E-money will not pay until it has received money from the customer, and the customer will not pay interest but will receive benefits if you pay E-money the agreed amount per month (at least EUR 40). Failure to comply with the payment plan will result in termination of the contract and refund of the savings. However, this amount is deducted from the € 10 office costs, which is a relatively small risk for the consumer compared to installment and flex loans.

Vacation Saving reminds you of ASP accounts because the money saved is used to purchase a specific product or service. In vacation savings, it is an overseas trip from Aurinkomatkat-Suntours and in ASP savings, your first home is your goal. In the first one, however, you do not need to borrow at the end, but you cannot choose from whom to buy the trip. The difference with savings accounts is that you cannot use the funds you want.

A holiday savings agreement is worthwhile, especially for Aurinkomatkat-Suntours

A holiday savings agreement is worthwhile, especially for Aurinkomatkat-Suntours

A holiday savings contract is a profitable activity for Aurinkomatkat-Suntours because it commits the consumer to purchase a trip from a particular provider even before they even have the money. With a variety of financing and payment options, agents selling products and services will gain customers, even if their prices are slightly higher. Man is a comforting being, and paying must be easy.

Once the savings target has been reached and the trip is starting to gleam in the field of vision, the 5% savings reward can be used to purchase the trip. However, this bonus cannot be used for other discounts. Therefore, it is worth investigating whether the discounts are better than the benefit of the savings bonus. You can stop saving even when the target amount is already reached, but it costs € 10 to terminate the contract.

If the trip already booked is canceled, the remaining costs will be paid out of the savings. The savings bonus and the savings can be transferred to a family member or to a person specifically named. However, at the customer’s request, a saving of € 20 will be charged.

Vacation savings can be a good thing if:

  • Know that with your money you buy a trip from the sun
  • Systematic saving is difficult
  • You can get a discount on your trip at times when there are usually no discounts eg ski holidays

Other means may be better if:

  • Maybe after all, he wants to look at the cheapest prices again
    • For example, a savings account pays a little interest on money, which just keeps the value of the assets roughly the same as inflation devours it
  • Systematic saving succeeds
  •  

Housing loan despite payment note

Taking a home loan is often a very big and important step in life. Usually this loan is taken when it is a move to something new. However, if you have one or more payment notes registered on you, there is a risk that this may affect the possibility of being approved in a home loan application.

Here we will explain how it works to obtain a home loan despite payment note because you should not be too worried.

money loan

If you have a good order for your finances otherwise, there should be no major problems to be approved.

In Sweden, there are almost half a million people who have payment remarks. This means that there is also a large market for lending institutions to enter. A note of payment does not necessarily mean that the person has poor finances, for example, they may arise after carelessness. If they have arisen due to financial difficulties, there are also great possibilities that these problems have been solved when the application is submitted.

A payment note is registered for three years which is a long time.

money loan

The loan institutions that approve that people are looking for home loans with a payment note have just come up with this. Generally, you can say that there are some newer players offering this kind of loan. The old classic banks almost always say no to home loans for people with a down payment.

Why do they lend?

The big advantage you have when you apply for a home loan despite a payment note is that it is precisely a mortgage that the application concerns. This is a loan that has the home as collateral, which means that the loan institution has a much greater security when lending. Should you not be able to repay the repayments, they may require the property to be sold to repay the loan, which makes them feel more secure about getting their money back. And if there is less risk for the lender, it will normally be that you as a borrower will have better conditions and more opportunity to get approved.

One thing to keep in mind is that even though these lenders lend money to you who have payment notes so the note carries with them something negative. There is a greater risk of lending when a comment is somewhat negative. This often means that you have to pay a slightly higher interest rate for your loan.

The part of the home loan that is relatively easy to get approved for is the mortgage loan.

The part of the home loan that is relatively easy to get approved for is the mortgage loan.

This is the part that the house stands for as security. The remaining part of the purchase price you must either pay cash or obtain other loans to cover. This can be a little more difficult, but if you have a good order of the finances, it probably shouldn’t cause too much trouble. The bottom loan can amount to a maximum of 85% of the value.

Who lends money?

A little further down on this page you will find suggestions on loan institutions that offer you to apply for home loans even if there are active payment notes. Then of course we cannot guarantee that you will be approved for an application, what we know is that these are some of your best options.

Borrowing and lending money through crowdfunding | Payday Loans

Crowdfunding is incredibly popular. The news item was recently published that in the first half of 2015, 49 million euros in funding was raised in the Netherlands with crowdfunding. A doubling compared to the first half of 2014! This makes crowdfunding the largest form of alternative financing, according to consultancy firm. High time to take a closer look at that. http://ecoformations.net for a critique

What is crowdfunding?

What is crowdfunding?

In short, crowdfunding is a form of borrowing and lending money online. Around 2010 this phenomenon came to the Netherlands from the United States. It connects people or companies that want to borrow money for a project or company directly with investors. Often simply via an online platform. In total, more than 150 million euros have already been raised in our country. An amount that will probably only increase further in the coming years.

Borrow money as an entrepreneur

Borrow money as an entrepreneur

Originally crowdfunding was created for charities or companies. Entrepreneurs make grateful use of this form of borrowing money. Certainly now that banks have been extra critical about providing a loan since the crisis. Thanks to crowdfunding, entrepreneurs can still get started with their project. Good examples of crowdfunding successes are the Fairphone and digital news platform.

Borrow money through crowdfunding

A crowdfunding loan is not only reserved for companies. Consumers can now also borrow money via this route. It is similar to borrowing from friends and family, only you make your request for a loan through an online platform to strangers. Keep in mind that this form of borrowing costs money. You pay interest to investors and administration costs to the platform. How much this is varies per platform.

Lend money through crowdfunding

Lend money through crowdfunding

Investing through crowdfunding is not risk-free. For example, it is important that you can estimate the risk of your investment yourself. For example, when investing in a private loan, always check whether the platform does a ABC check. This gives you more insight into the creditworthiness of the person applying for the loan. Also thoroughly study the terms of the loan or investment, or a possible loan contract. What happens if the recipient cannot pay the interest? In short, by paying close attention and using common sense, you can prevent some risks.

Real estate loan insurance when you are on sick leave?

A case that often comes up and for which many of you contact me: Can I borrow if I am sick?

I had the case this morning of a lady who is looking for loan insurance for her son

loan insurance,money

His son is currently on sick leave and for the moment the loan insurance of the bank grants him only the guarantees Death, Total and Irreversible Loss of Autonomy and Disability. The incapacity for work guarantee is refused. Since he buys a principal residence and must be able to compensate for the loss of income if he is on sick leave (to be able to continue to pay his monthly loan maturity), the bank refuses to grant him his ready.

Does the bank have the right to refuse to lend you if you are not covered for the work disability benefit?

Only death guarantees and total and irreversible loss of autonomy are mandatory for real estate loans regardless of the type of investment made. But then, depending on whether it is a main residence, a second home or a rental investment, the criteria of guarantees requested evolve and are reserved for each bank.

Some banks will be more flexible on the additional guarantees to be subscribed (total and partial incapacity for work, total and partial permanent disability, option back and psy disorders with or without condition of hospitalization …) others firmer. Each bank has its own criteria depending on the investment made. For information, you will find in our page by clicking here, the guarantees required by the main banks for an investment for a principal residence.

The death and total loss of autonomy guarantees are reserved mainly for rental investments because in this case, the borrower’s income is guaranteed by the rents he will receive (at least in large part). We are seeing more and more banks that also require the disability guarantee for rental properties.

For a principal residence, the death and loss and irreversible benefits of autonomy will almost always be accompanied by disability and work disability guarantees. Certain profiles of borrowers already having a large real estate patrimony or significant savings may sometimes be exempted from subscribing to the disability and disability guarantees, but the final decision is reserved for the sole assessment of the bank that will grant them the loan.

A little parenthesis to understand why the bank claims all these additional guarantees. The bank tries to make sure that loan maturities will continue to be paid if you lose half of your salary. Indeed for an employee, in most cases, the social security pays you only half of your salary when you are sick and this for a maximum of 3 years (then if you still can not return to work, social security will switch you into disability and it is the disability guarantee that will take over to pay the credit maturities). For a liberal profession or a self-employed worker, the daily allowances paid by the health insurance can even be lower than 50% (it depends on each general scheme on which depends the profession, it is thus necessary to inquire on a case by case basis). The Bank is therefore seeking to ensure that you will be able to continue to repay your credit maturities.

What alternatives are available to you if you buy a principal residence and the additional disability and disability benefits are refused?

Use the insurance delegation

In the first instance, we advise you to have your file reviewed by an insurance company other than the bank: some insurance companies are more flexible than others to insure people with an aggravated health risk, contact us, we will guide you to companies that can assure you, depending on your pathology.

Moreover, for many pathologies, and as soon as you enter into its criteria of application, the AERAS Convention makes it possible to push back the limits of the insurability of the people who present / have presented an aggravated health risk.

Note however that in this case, where the person is still off work, the insurance will not have any perspective on the consequences of the judgment, it is then possible that it adjourns its decision, proposing re-study the file, once the person has resumed his activity.

See if you have a professional pension plan

pension loan,money

Secondly, if no insurance has agreed to insure you, contact your employer to see if you have a pension plan that insures you to supplement your salary in case of sick leave. This is a negotiation to do with your bank because it can consider that if you get fired, then you will not have this foresight … But it’s worth a try because I saw a lot of cases in which the contract is an acceptable argument by the banks. And among other things when the borrower is an Unpaid Worker who had already subscribed to his own foresight when he was in good health. In this case, the borrower is his own employer, so there is no risk of dismissal and if the activity is sustainable (what the bank knows since it has agreed to grant you the loan), it There is no risk of filing for bankruptcy either.

Try to bring other guarantees to the bank

bank money

Thirdly, if you do not have a provident contract or if the bank refuses to take it into account, there will still be the possibility of taking another guarantee such as the surety of a relative for example or the pledge of life insurance or other savings product. You can also offer the bank to take a mortgage on your property, if the main deposit is another deposit type Credit Housing for example.

Changing Loan Insurance: A Good Example of Savings

I decided to publish now the best examples of savings made by our customers on their mortgage insurance.

This case is naturally based on a real situation recently encountered 

We quickly carried out a simulation and the answer was obvious: a gain of 9,004.95 € or nearly 42.5% on their loan insurance

loan insurance,credit

Indeed, as a reminder, loan insurance taken out with a bank can be terminated in two ways: either by invoking the Loi Hamon, which allows to change borrower insurance in the year following the anniversary date of the contract of insurance, that is to say once this first year has passed, invoking the Bourquin amendment which makes it possible to terminate 2 months before the anniversary date of the loan agreement, each year.

To review all the explanations on the borrower insurance changes, the equivalence of the guarantees, the anniversaries dates, etc.

To change loan insurance, the ideal is to go 4 months before the anniversary date of the contract

To change loan insurance, the ideal is to go 4 months before the anniversary date of the contract

We must determine this anniversary date very precisely and beware, where it gets worse, is that depending on the banks, this date is different: some take into account the date of signature of the loan offer, others the date of signing the application to join the insurance … Consult us, we will tell you precisely which date to take into account depending on the bank and your current insurance contract.

To be equivalent in terms of guarantees,had to take out the following guarantees:

  • Death
  • Total and irreversible loss of autonomy
  • Total Work Incapacity, with an option for coverage of back and psy without conditions of hospitalization
  • Total Permanent Disability, with an option for coverage of back and psy without conditions of hospitalization
  • Mr and Mrs EH were also to be insured at 100% each.
  • The profile of Mr and Mrs EH is as follows: they are both non-executive employees, non-smokers and were born respectively in 1973 and 1978.

They had 4 lines of loan to ensure:

  • A first loan of € 8,166.52 at 0% over a remaining period of 135 months
  • A second loan of € 75,900 at 0% over a remaining period of 241 months (including a deferral of 109 months)
  • A third loan from 42,049.83 € to 1.29% over a period of 125 months
  • A 4th loan from € 67,439.81 to 1.29% over a remaining term of 125 months

If they had continued with their group insurance of the bank, the sum of the insurance premiums due would have been 21 192.62 €.

Thanks to the insurance delegation, I found them a totally equivalent contract in guarantees (and even with some better guarantees), for a total of 12,187.67 €, saving 9,004.95 € or 42,5%!

So you too do not wait to contact us and make big savings on your mortgage insurance. We will search for you the most competitive contract with equivalent guarantees. You will also be able to decide if this economy is very important to choose additional guarantees or to increase your quotas to be better covered!

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How to shop for the best student loans for parents

How to shop for the best student loans for parents

You can get Same Day Payday Loans Online, No Credit Checks … – Bridge Payday. The Federal Student Aid Office offers Parent PLUS Loans, which are held solely by the parent of a college student. Similarly, some private lenders offer student loans that are held by the parent alone.

However, Parent PLUS Loans carry some of the highest interest rates of any federal student loans. That means you might be able to save money by applying for private parent loans rather than Parent PLUS Loans.

As with any financial product, you’ll need to shop around to find a good deal on student loans for parents. Here are some key features the best parent loans for college offers.

Low student loan rates

When you’re choosing student loans for parents, interest rates are key. The lower the rate, the less interest you’ll pay to incur the debt. So compare both private and federal loan rates to make sure you’re getting the best deal.

Low or no loan fees

Student loans for parents can come with charges such as student loan origination fees. Watch out for these costs and make sure to compare APRs, which will reflect the full cost of the loan — including any fees.

Student loans designed for parents

Allowing parents to cosign student loans is common. However, if you’re looking for a loan that won’t add to your child’s student debt, you’ll need to find lenders that offer loans directly to parents. We’ve highlighted our top picks below.

Eligibility requirements you can meet

Lastly, you might want to consider your creditworthiness. You’ll need a good credit score and history and a low debt-to-income ratio to qualify for most student loans for parents. If you’re unlikely to qualify on your own, you might need to apply with a cosigner who can.

4 best parent loans for college

4 best parent loans for college

Of course, having a starting point can help you with your search for the best student loans for parents. Here are our four favorite private lenders that currently offer parent student loans.

1. Citizens Bank Student Loan for Parents

  • Fixed rates on Citizens Bank student loans for parents
  • Rate discount of up to 0.50%
  • No origination fees or prepayment penalties
  • Parent-student loan terms of five or 10 years
  • Loan amounts up to $295,000 or certified cost of attendance
  • In-school interest-only or immediate repayment options

2. College Ave Parent Loan

    • Fixed and variable rates on College Ave student loans for parents
    • Rate discount of 0.25% after autopay enrollment
    • No origination fees or prepayment penalties
    • Student loan terms of five to 12 years
    • Loan amounts from $2,000 up to the certified cost of attendance
    • Option to disburse up to $2,500 directly to the parent for out-of-pocket expenses
  • Lower in-school payments or immediate repayment options

3. Sallie Mae Parent Loan

  • Fixed and variable rates for Sallie Mae parent loans
  • 0.25% rate discount for autopay enrollment
  • No origination fees or penalties for prepaying Sallie Mae student loans
  • The 10-year term on student loans for parents
  • Student loan amounts from $1,000 up to the certified cost of attendance
  • Option for interest-only payments while the student is enrolled, for up to 48 months
  • Available to spouses and other student benefactors as well as parents
  • Free quarterly FICO credit score updates

4. SoFi Parent Loan

  • Fixed and variable rates
  • Rate discount of 0.25% with autopay enrollment on SoFi student loans
  • No origination fees or prepayment penalties
  • Terms of five or 10 years
  • Loan amounts up to cost of attendance after another federal student aid is applied
  • Immediately enters full repayment
  • Perks such as unemployment protection, career support, and wealth advisors for SoFi student loans

How to decide if a parent-student loan is right for you

How to decide if a parent student loan is right for you

In addition to shopping around among private lenders, you should compare student loans for parents to other college financing options. Here are some questions to consider.

Is your credit good?

To figure out if you could benefit from private student loans for parents, consider your creditworthiness. The better your credit, the more likely it is that you’ll qualify for a parent loan — along with rates that are low enough to make them worth your while. If you don’t know your current credit score, you can quickly check it with free online credit check tools.

Typically, you’ll need good credit to excellent credit (a FICO score of around 700 or higher) to get the best rates on parent student loans.

If you qualify for low rates, you could save a lot in loan fees and interest — especially if you can beat the 7.00% interest rate and 4.276% loan fee on Parent PLUS Loans.

For example, SoFi states that its typical 5.849% APR on private parent loans saves $3,637 on a balance of $28,000 with a 10-year repayment term compared to borrowing with Parent PLUS Loans.

If your FICO score falls below that 700 benchmark, a Parent PLUS Loan might be a better choice. Parent PLUS Loan eligibility requirements are easier to meet than most private lenders’ credit standards. While private student loans require good credit, PLUS Loans simply require “nonadverse credit.”

Even if you do have adverse credit, it could be worth applying. If your Parent PLUS Loan is denied, the Federal Student Aid Office will allow your child to borrow more Direct Unsubsidized Loans to help cover any gap in funding.

Can you afford to repay parent student loans?

Some parents want to own a student loan to simplify the borrowing process and keep their child out of student debt.

Of parents who borrowed for their child’s college, two-thirds say they don’t regret it, according to our parent student loans survey, despite the fact that most parents reported student debt balances of $40,000 or more.

Still, you should borrow responsibly and take on student loans for parents only if you’re confident you can afford to repay them. Limit loan amounts as much as possible and choose a student loan term that will result in affordable student loan payments.

Also, make sure you can continue to prioritize other important financial goals, such as saving for retirement, alongside repaying student loans and covering college costs.

Are you and your child repaying student loans together?

Other parents might view repaying student loans as a responsibility their child should share. If that’s you, cosigning a private student loan might make more sense. That way, both you and your student share equal legal responsibility for repaying the debt.

Many lenders offer cosigner release, meaning your child eventually could assume full responsibility for managing and repaying the cosigned loan. Between cosigning a student loan or taking our parent loans on your own, consider which is the better fit for your financial future.

Ultimately, student loans for parents allow borrowers to pay for college costs and control future repayment if necessary. By reviewing this guide to the best parent loans, you’ll know how to choose the best borrowing option for you and your child.

How to get the most out of fast installment loans

Quick personal loans are a good tool to solve specific setbacks, although there is such a variety of offers that it is sometimes difficult to opt for one. To choose the best one, we must take into account many factors: the price, the concession speed, the credit conditions, the possible promotions … Below, we show several keys that will help us find the loan that best suits us and get the most out of it.

How to save money when we apply for quick personal loans

When we look for quick online installment loans the goal is to get the money we need for the lowest possible cost. To do this we must follow these guidelines:

  1. Do not ask for more money than we need. The more money we ask, the more we will have to pay in interest. That is why it is advisable to cover part of the expense with our savings to reduce the amount of the loan.
  2. Choose the shortest possible term. The interests of personal loans instantly are usually daily or monthly, so the sooner we repay the credit the less we will pay. In addition, if we are able to repay the loan early we can save money in interest.
  3. Compare to find the best offer. With the credit comparator, we will find the best fast personal loans of the moment. In this way, we can find the cheapest offer and the one with the best discounts and conditions.
  4. Take advantage of promotions. The personal loan market is instantly more competitive and from time to time very advantageous promotions appear.

How to get quick personal credits in less than an hour

If we request this type of financing is to be able to dispose of the money as soon as possible. There are two factors that influence the speed of granting personal credits instantly:

  • The lender’s work schedule: if we send our request within the business hours of the company, we will receive a response in a matter of a few minutes. Otherwise, we will not know if they have approved it or not until the next business day.
  • The banks that the company works with: the lenders will deposit us the money of the fast personal loans almost instantly if we have an account in one of the banks with which they work. Otherwise, the transfer could take up to 48 hours to be done.

Precautions when hiring fast personal loans

It must be remembered that fast personal loans are designed to deal with specific emergency situations, so it is not advisable to use them as a normal means of financing. If we do not return the money on time, late interest will be applied to us that can worsen our initial situation and may leave us over-indebted. To avoid penalties for non-payment, it is advisable to extend the term as long as the company allows it. Asking for the extension will have a cost, but it will always be cheaper than not paying.

The Government allows Junqueras to renew debt for 685 million

Term debt operations for 685 million euros, following the meeting held today in Moncloa by the Vice President of the Catalan Generalitat, Oriol Junqueras, with the Vice President of the Government and the Minister of Finance. Treasury, Cristóbal Montoro. According to Europa Press informed sources of the Executive, the meeting has gone “well” and has developed in a “cordial atmosphere” in which it has spoken of the path of fiscal consolidation, of the autonomic finances and in particular of the expirations to Short-term of Catalan debt.

The request of the Generalitat is that short-term loans were transformed into long-term loans with the support of the Autonomic Liquidity Fund (FLA). It is a claim that the Catalan autonomous government has been carrying out for months. However, the Ministry of Finance has not accepted this request so far and neither today, although they will give oxygen to the Generalitat authorizing a new operation of short debt that adds to those already authorized this year.

Soraya Sáenz de Santamaría and Cristóbal Montoro have transmitted to Junqueras that the Council of Ministers tomorrow the Catalan Government to formalize short-term debt operations for 685 million euros. The Generalitat had requested authorization for debt amounting to 5,100 million euros of its short-term maturities in 2016 and part of those it has in 2017. The Executive of Mariano Rajoy authorized last June debt operations worth 4,200 million of euros to cover these maturities in the short term and now it will do so by 685 million through September

 

In today’s meeting, Sáenz de Santamaría and Cristóbal Montoro have reviewed

Debt

Sources of the Generalitat have explained to Europa Press that the vice president of the Executive has recognized that Catalonia is key to the debt capacity of Spain because the good reputation of the growth of the Catalan economy favors the credibility of the State in the ability to return the debt contracted. These sources explain that the vice president has also asked them to be responsible when referring to the independence process initiated by the Catalan government, while Junqueras has replied that the Executive of Mariano Rajoy himself be responsible and not “play with the reputation of Catalonia ”

together with the Catalan vice-president, the consequences of the departure of the United Kingdom from the European Union and the Catalan vice-president has expressed interest in Barcelona hosting any of the institutions that leave the country. The city of London To achieve this, they have agreed to study and coordinate it in the bilateral State-Generalitat Commission. Specifically and according to sources from the Generalitat, Barcelona has been asked to be the headquarters of the European Medicines Agency, which is now in London.

Laboral Kutxa achieves a profit of 76 million in the first semester, 4.3% more than in 2017

Laboral Kutxa has achieved a consolidated net profit of 76 million euros at the end of the first half of this year, which represents an increase of 4.3% compared to the end of June 2017, according to the data made public this Wednesday the Basque credit cooperative.

In a statement, its leaders have stressed that Laboral Kutxa has continued to “improve results” in a general scenario of “high demand”, since the banking business during the first half of the year has developed “in the same parameters of recent times “, with the interest rates” refugees below zero and exerting a strong pressure on the margins “.

These results, they have indicated, have been achieved thanks to “a notable commercial boost” of its sales network, which has been accompanied by a “weighted risk management” and an “efficient containment” of the expenses.

The sum of all this has allowed the Basque credit cooperative to increase its results by 4.3%, reaching a consolidated net profit of 76 million euros at the end of June, with a return on equity of ROE of 7, 59%

Laboral Kutxa’s income statement continued to be conditioned by “the anomalous and persistent situation” of negative interest rates. As he explained, the fall in the cost of deposits in recent years can not offset the decline in interest on loans, which affects the generation of typical bank income.

The interest margin has added 125 million, 1.9% below the same period of 2017, where “the mortgage portfolio linked to the Euribor is particularly considered”, have pointed from Laboral Kutxa.

The “good” performance of the chapter of commissions, which increased by 6.8%, has allowed placing the basic margin at 175.4 million euros, 0.5% above the figure reached in June 2017.

The gross margin, on the other hand, reached 210.7 million euros, representing a year-on-year decrease of 7%. However, the Basque entity has specified, if a comparison is made inhomogeneous terms applying the current accounting rules IFRS9 to account for equity gains, the evolution of the gross margin has been positive, with an increase of 6.3%.

Likewise, the Basque cooperative has highlighted that administrative expenses have been reduced by 1.2% compared to the same period of 2017.

After accounting for 13.5 million euros for provisions, write-downs, impairments, and taxes, the consolidated net profit in the first half of 2018 has increased by 4.3% to 75.7 million euros, prior to the appropriation corresponding to Obra Social funds.

Among other data, Laboral Kutxa has remarked that the rate of delinquency has continued to fall to stand at 5%, “very far” from the levels of the average deposit entities, which stood at 6.70% at the close of may.

Along the same lines, the entity continues to occupy, in the words of its managers, “a very well-known place in terms of solvency” and the capital ratio of maximum quality CET1 (Common Equity Tier 1), which “determines the strength” of the financial entities, is situated in a 17.85%.

In this context, the relationship between deposits and credits on its balance sheet gives Laboral Kutxa “an excellent liquidity situation”, as he highlighted. The LTD (Loans to Deposits) ratio stands at 79.8% and the short-term liquidity ratio LCR (Liquidity Coverage Ratio), which measures the entity’s ability to meet its short-term commitments, sits in 400.7% when the ratio established as a reference is 100%.

EVOLUTION OF SAVINGS

EVOLUTION OF SAVINGS

The set of resources managed by Laboral Kutxa has increased 1,368 million in 12 months and reaches 21,676 million euros, representing an increase of 6.7%.

The main growths on the balance sheet have been concentrated insight accounts, which have increased by 11.3%. As regards the off-balance sheet figures, the evolution of investment funds stands out, with a net increase of 20.7% since June 2017. As explained by the Basque cooperative, the increase has mainly focused on funds investments of the portfolio advisory service.

The growth of activity in the first half of the year has been especially reflected in the granting of credit. In the segment of individuals, the volume of mortgages formalized in the semester has increased by 14.1%. For its part, the formalized balance of consumer loans in the first six months of the year has grown by 4.5% with respect to the same period of the previous year.

In the commercial sector, the volume of loan, lease and loan formalizations granted to companies has grown 11% with respect to the volume registered in June 2017.

As indicated by Laboral Kutxa, the amortization rate continues to exceed the new production and the volume of total loans to customers falls slightly to 13,372 million euros, 0.7% in the year-on-year comparison. This evolution, he pointed out, is a reflection of the process of reducing household debt, where the fall in the stock of debt persists.

THE INSURANCE AND BANKING ONLINE BUSINESS

THE INSURANCE AND BANKING ONLINE BUSINESS

In the first half of the year, the insurance business posted a total of 19.8 million euros, which represents an increase of 14.1% compared to 2017, mainly due to the growth in premiums and the control of expenses.

On the other hand, Laboral Kutxa has 380,000 active customers of its online banking. The mobile terminal is the one with the highest growth, above the personal computer, which has been “favored” by the launch of the responsive online banking model, which adapts to any device, he explained.

Specifically, in the comparison of private customers, excluding business customers, the number of users who use the mobile device is almost 20% higher than those who use the computer.

This evolution of the mobile channel is also observed in the hiring of the DISPON loans (pre-granted instantly and without paperwork), in which the number of loans contracted through the mobile already exceeds those of any other channel.

As for the exclusive payment application of Laboral Kutxa, LKPay, which enables two payment solutions, P2P with Bizum and NFC mobile payment, the 70,000 users have already been exceeded.

The Postamail service, which avoids the use of paper postal mail for the flow of communications between the entity and its clientele, already has 500,000 users. On the other hand, the alert service is close to 350,000 users, 47% of them through app notifications.

From Laboral Kutxa, have stressed that, from a qualitative point of view, the most important release until June is Argitu, the new online platform to self-manage personal finances that helps control revenue and expenses or the evolution of savings, among others. Likewise, an online charge for home insurance has been launched.