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Creditworthiness and mortgage

Some people have trouble getting a mortgage and wonder why this is happening. The reason for refusing a loan may be that we are on the banks’ lists, as debtors who did not pay their debts on time, or some enforcement bailiffs are pending against us.

It may also be that we have credit cards and our creditworthiness is reduced by these amounts. If you want to get a mortgage, you will have to get rid of it all, i.e. give your credit cards.

What else?

We may not earn enough to get money to finance the purchase or construction of a property. If we earn too little, the loan amount may be much lower than the one we assumed. At the bank, we will receive one piece of advice, namely you will have to change your job. This is what it looks like every day in banks, to which a lot of people come. Some are happy because they get even a millionth mortgage, while others have problems and receive virtually nothing.

If we belong to the second group of people, unfortunately, but nothing can be done. Banks check creditworthiness very carefully today because they do not want to have problems later with a customer who has no money to pay back. We note that today, a down payment is required, and even ten years ago you could get a mortgage for 130% of its value. Today, collateral and insurance are the basis, so it will be harder to get a mortgage.

The problem is also what expenses we have. If we earn a lot, but it costs us a lot an apartment or a house, then getting a mortgage will also be difficult, so everything is very important here and everything is paid attention. If we go through several facilities, we’ll find out what it is all about and then we will know if there are any opportunities or not. It is good to visit several banks, because they often have a completely different approach to what our creditworthiness should look like.

Private company

You can recommend private companies for people who really need money but have problems getting it from the bank. You just have to be very careful here, because you can easily make a mistake, which you don’t want. There are a lot of companies, so you have to choose the most known and reliable ones, then we don’t take the risk, or at least it is much smaller. The most important thing for us is to get a mortgage, but you have to be really careful.

We read the contract carefully and know what to write back. We are often so fascinated and excited by this situation that we do not pay attention to what is happening. It can’t be that way, because it can cost us a lot, and we can’t afford it. It will be better to check everything very carefully and then we know who we are going to cooperate with and whether it pays off. If everything is OK, we will finally receive the money and we will be able to finance our property.

We calculate the loan ourselves

It is possible to calculate and count everything yourself. You don’t have to leave the house to do it. We use a mortgage calculator for this. You can use the calculator that is on the specific bank’s website. You can also choose a calculator that looks for and calculates offers from many banks. The latter solution is much better because you can find out faster what banks offer us and what we are able to receive.

If we see that on such a calculator one of the banks is able to give us the amount of mortgage we are interested in, we can do nothing but contact them. We will find out whether these data from the calculator are current, and if so, which formalities should be completed so that we could receive such a loan as soon as possible. The sooner we calculate these amounts and contact the selected bank, the better it will be for our situation. You have to hurry, because it will take a lot of time to complete all the formalities.

The internet gives us opportunities that save us time, and we don’t have much time. If the calculator comes out that we have no chance of getting a mortgage, unfortunately, but it will be very hard.

Of course, you can still try to arrange something and find out, but in most cases we only waste time. This is how it looks. If we do not finance the purchase or construction of our dream property without a loan, we have to strive to effect and maybe we can finally achieve our goal. 

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Withdrawal from the loan agreement – how to cancel the agreement?

June 20, 2018 Withdrawal from the loan agreement? Yes it is possible. Banks must ensure that customers can cancel their contract. The legal basis, which is often the gate for people who make financial decisions too hastily, is the Consumer Credit Act. What can we find in the provisions on withdrawal from the loan and how to cancel the bank loan agreement? The procedure is simple and the rules for withdrawing from the loan are clear and transparent. If the loan decision was a mistake, don’t delay. You only have 14 days!

When can you withdraw from the loan agreement?

When can you withdraw from the loan agreement?

Withdrawal from the consumer loan agreement (including online loan agreement, loan agreement within the meaning of the Banking Law, agreement on the postponement of the customer’s repayment date, if he incurs the costs of this postponement, the loan agreement when the lender incurs a liability towards a third party and a revolving loan agreement) , it is possible within 14 days of signing this contract. It is not allowed to exceed this deadline. For his behavior it is sufficient to send a statement within two weeks. We don’t have to give a reason for our decision, we can just change our minds and decide that we don’t need credit.

According to the Consumer Credit Act, the consumer does not bear any costs for withdrawing from the consumer credit agreement. The exception is interest for the period from the date of payment of money to the day of repayment of the debt.

How to cancel the contract?

How to cancel the contract?

Did your first loan burden your budget too much? Do you want to withdraw from the installment loan agreement? Or maybe you are considering withdrawing from a consolidation loan agreement? We already know when it is possible, but how to cancel the contract? If we have decided that we cannot afford a cash loan or we have changed plans and do not need such amount, we must complete a statement of withdrawal from the loan agreement. We should receive such a document from the bank. In addition, we are obliged to return the loan amount to the lender, including the interest, no later than 30 days from the date of submission of the statement in which we withdraw from the contract.

Withdrawal from the loan agreement – template

Withdrawal from the loan agreement - template

A ready statement of withdrawal should be found in the contract documents or on the website of the bank of our choice. Let’s take a closer look at the specific document templates provided by banks that we use on a daily basis.

  • Santander withdrawal from the loan agreement – we provide the name and name of the borrower, PESEL and contact details. We must also enter the contract number, the date of its conclusion and make a legible signature on the document. The declaration shall be made at a bank branch, with a credit intermediary or sent to the address of a banking institution;
  • withdrawal from the Alior Bank loan agreement – we provide the name, surname, address, type and number of the agreement as well as the date of its conclusion. We sign and send the document to the address of the banking institution;
  • withdrawal from the mBank loan agreement – we are required to provide personal data along with a PESEL number or passport series and number as well as the address of residence. We also enter the name, number and day of signing the contract, and in order to reimburse the bank for costs, we complete the field with the bank’s name and account number. Finally, we sign and send the document to the address of the banking institution;
  • withdrawal from the PKO BP loan agreement – we provide personal data, PESEL number and ID number, and then enter the agreement number and the date of its conclusion.

Effects of withdrawal from the loan agreement

Effects of withdrawal from the loan agreement

Withdrawal from the loan agreement does not threaten with negative consequences of such proceedings. The bank has no right to impose a fine or commission on us. As customers of a banking institution, we are required to pay interest that the bank accrued in the period when we used the funds. We must also repay the entire loan amount, within the aforementioned period of 30 days from submitting the declaration. Sometimes banks require additional costs, e.g. notary fees. Therefore, we should read the contract carefully to know all the conditions for borrowing money and giving up the injection of cash.

Withdrawal from the mortgage contract

Withdrawal from the mortgage contract

Withdrawal from the mortgage contract, in accordance with the Mortgage Act of 22 July 2017, is possible within 14 calendar days of signing the document. Prior to this date, the cancellation only applied to consumer loans – now the consumer can also cancel a mortgage.

The customer will be required to pay interest accrued for the period of using the money that the bank has paid out and other cost additions that the banking institution has incurred in connection with the contract. The amount of the mortgage, as in the case of a consumer loan, must be returned within 30 days.

Is withdrawal from the loan agreement tantamount to resignation from loan insurance?

Is withdrawal from the loan agreement tantamount to resignation from loan insurance?

Credit insurance is sometimes compulsory, at other times we decide ourselves whether we want to buy them. Protects against death, loss of health or work. It is worth thinking about it if we borrow a larger amount and want to provide ourselves and our family with a sense of security in the event of unforeseen events. What to do when we decided to take out insurance and we resign from the loan agreement?

If an additional service was connected with the loan agreement signed by us (e.g. insurance mediated by the bank), withdrawing from the loan agreement, we also withdraw from the additional services, and thus from the loan insurance agreement.

Withdrawal from the installment purchase contract

Withdrawal from the installment purchase contract

Installment purchase is a tied loan, a type of consumer loan in which the creditor incurs an obligation to a third party and the consumer repays the creditor the fulfilled service.

Let’s explain it with an example:

  1. We buy the product in installments in the store.
  2. The bank pays for shopping.
  3. We pay the installments to the banking institution that has paid for the goods or service.

Installment purchases (including online purchases) are subject to the same rules as consumer loans. We have the right to opt out of online purchases without any consequences. The deadline is unchanged and is 14 days from the date of purchase by the goods.

Withdrawal from the loan agreement and withdrawal from the loan agreement

Withdrawal from the loan agreement and withdrawal from the loan agreement

Withdrawal from the loan agreement works in the same way as withdrawal from the loan agreement. Online loans are a form of consumer credit. If you want to cancel the contract, just follow the same procedure as for the termination of the loan contract.
We can write a statement of withdrawal from the loan agreement. We give it the appropriate title, and in the text we enter the details of the borrower and the lender and the formula: “In accordance with Chapter 5 of the Act of May 12, 2011 on consumer credit (Journal of Laws 126, item 715) and item 7 Loan agreements, I hereby inform about my withdrawal from the Loan Agreement No. “.

Termination of the loan agreement by the lender

Termination of the loan agreement by the lender

Withdrawal from the loan agreement is not tantamount to termination of the agreement. Termination of the contract does not offset her. The lender may terminate the contract if the borrower fails to comply with its terms.
The loan agreement is terminated as a result of:

  • failure to pay the full loan installments on time specified in the contract, for at least two payment periods,
  • failure to pay the outstanding installments or parts thereof within 7 days of receiving the call under pain of termination by the creditor.

The term of termination of the consumer loan agreement by the bank may not be less than 30 days. Therefore, if we want to cancel the contract because we cannot afford a loan – we should cancel it within 14 days. Otherwise, we will receive from the bank notifications of termination due to non-payment.

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Cancellation of a loan – termination of the contract

April 25, 2016 Unplanned expenses, no savings – in such situations, the quick online loan is often the only solution. Unfortunately, it happens that the decision taken too hastily will not be favorable to us. Fortunately, according to the law, we can make a complaint or withdraw from the contract. The complaint is only possible if the lender has not fulfilled the concluded contract. We can terminate the contract even if the loan company has fulfilled it in full. This is our decision, which usually does not require justification.

When is the termination of the loan agreement possible?

When is the termination of the loan agreement possible?

Usually, when taking an online loan, we are convinced that we will need it. In fact – this is often the last resort. According to research carried out for Net Credit, Poles who take out loans most often make such a decision spontaneously in connection with sudden expenses. As many as 66% declare so. respondents. No wonder that they often give up loans 1 . This does not mean that we all borrow lightly. However, there are situations when we assess our situation incorrectly and want to resign from a previously contracted loan. As it turns out, we have the right to do so and – importantly – we do not have to justify our decision. Loan companies don’t investigate why we want to cancel the contract. We must remember that we have 14 days to resign from the loan from signing the contract with the loan company. The service provider may also withdraw from the loan agreement, which requires a more detailed discussion.

Filing a resignation from our commitment in a non-bank institution should not be problematic. To this end, we should complete the appropriate form, which is one of the annexes to the contract we have previously signed. If we do not have it, we can prepare such an application ourselves. We have to name it: “Withdrawal from the contract / Withdrawal form.” Then we declare a refusal, citing chapter 5 of the Consumer Credit Act. There are specific requirements that relate to the course of withdrawal from the contract, as well as a prohibition on the consumer to bear the costs of doing so. In this chapter we will also learn that we have 14 days to submit the form in question.

Of course, we should also add the date of the contract conclusion and receipt of funds to our account, as well as the loan amount, loan period and information on additional costs to the withdrawal form. The correct submission of the application within 14 days is the guarantor of the application being approved by the loan company.

Knowing your rights will help when you cancel your credit or loan

Knowing your rights will help when you cancel your credit or loan

In accordance with applicable regulations, we have the right to resign regardless of where we sign the loan agreement, i.e. at the branch of the loan company, in our home (so-called home services) or via the Internet. Then, within 14 days of submitting the statement of withdrawal, you should return the funds that the loan company has transferred to your account. If we do not meet this deadline, it will not be possible to resign from the loan and we will have to pay it back according to the previously agreed schedule. However, we should not panic, in case of repayment problems we can extend the repayment date.

When does the lender terminate the contract?

When does the lender terminate the contract?

It is worth mentioning that there are also situations when the contract is terminated by the party granting the loan. It’s a bit more complicated. The loan company has the right to withdraw from the contract and refuse to issue the loan when it considers that the client may not repay it due to the poor financial situation. This entitlement is granted to the lender if at the time of considering the loan application he was not aware of the financial problems of the applicant. The legal basis in this case is Article 721 of the Civil Code.

The difference between a complaint and withdrawal from the contract

The difference between a complaint and withdrawal from the contract

It should be mentioned that there is a significant difference between a complaint and withdrawal from the contract. The complaint is defined as the consumer’s right to replace, repair or return the product based on the non-compliance of the goods with the contract. Thus, we have the right to complain if the commitment given to us is inadequate to the contract. However, we must reckon with the need to prove that we were actually given a installment loan, short-term loan or loan on terms other than those for which we applied. We will learn about the rules of our lender about how to make a complaint.

Withdrawal from the loan agreement is the same as giving up this service. As already mentioned, it is subject to legal norms that are included in the Consumer Credit Act. Then our contract is canceled, not replaced with another product, as is often the case with a complaint. Unlike complaints, it does not require justification, so we can freely use this option.

When submitting a complaint, check what it must contain

When submitting a complaint, check what it must contain

Not every letter in which we express our doubts about the behavior of a loan company will be treated as a complaint. Also, the title of the magazine with the word “complaint” will not help, as the complaint letter must meet certain standards. It should contain personal data, the number of the loan agreement to which the complaint relates, as well as the date of its conclusion.

After entering your data and contract details, you should present the event, clearly and concisely describe the circumstances and reasons for the situation. If you refer to any documents, then you should attach them – a scan or photocopier is enough to make the application transparent for the person who will examine it. Remember to clearly define your claims against the company. If you send a complaint by e-mail, you should also ask for confirmation of receipt of the e-mail in the body of the message. Thanks to this you will be sure that your letter has been delivered.

According to KPF, complaints in the financial sector are rejected mainly because of incomplete submission of documents and inadequately supplemented complaint letters – lack of data of the borrower, lack of contract number, to which the letter relates. In addition, many people still do not read the contracts they sign and then make complaints that have no basis. So remember to always know the conditions you agree to.