Month: June 2019

Repay your mortgage early: these are the pros and cons

by admin

Has the monthly payment of your home not stopped you in recent years from creating a nice savings box? Then it is an option to repay your mortgage early. The fact that savings rates are currently very low is an additional argument.

But beware: There are various conditions attached to an accelerated repayment. Discover all the advantages and disadvantages here, so that you can make a well-considered decision.

Repay the mortgage early: the pros

Repay the mortgage early: the pros

If you have a substantial savings reserve and still have a long mortgage term, it is advisable to check with your lender for an early repayment. Here are the most important arguments:

With loans with a long term (20 years or more), an accelerated repayment of the capital will probably decrease the total interest charges of your mortgage.

If you pay off part of your loan early, the monthly repayment will go down. And so there is budget space again. Another option is to keep the monthly repayment the same and to shorten the term of your mortgage loan.

With an early repayment, depending on the age at revision

With an early repayment, depending on the age at revision

The premium for the outstanding balance insurance will also go down if you do not forget to inform the insurer.

with an accelerated repayment you have the option to continue the outstanding balance insurance. In this way, the outstanding balance insurance (for the duration of the original loan) automatically changes into pure death cover. If the insured person dies, the surviving dependents will receive the death capital, while the home loan will no longer have to be paid.

Repay the mortgage early: the cons

Repay the mortgage early: the cons

At the same time we want to point out that not every scenario benefits from early repayment:

  • If you redeem your mortgage early, you risk falling without savings reserves. And that naturally entails financial risks. Make sure you always have enough savings to cover your daily expenses for a few months.
  • Those who pay off their loans early may miss out on tax benefits.
  • For the adjustment of your loan, the bank usually charges a reinvestment fee of 3 months interest.

Would you like more information about the consequences of an early repayment on your debt balance insurance? Feel free to contact us, we are ready for you!

Huge price difference car insurance youngsters

by admin

The difference between the cheapest and most expensive price differences in car policies for young people is huge. To insure an eleven-year-old city car, an expensive company charges almost four times as much as a cheap insurer. On average, a young car owner pays around 1000 euros per year for third-party coverage. In 18 months, young people pay just as much in premium as their car is worth. This is according to research by the independent comparator Lender.

Difference between cheapest and most expensive insurer

car loan

An 18-year-old motorist pays more than twice as much for his third-party insurance than someone who is over 24 years old. Insurers charge much higher rates for young people, because they have a higher accident risk than older drivers. Research by SWOV has shown that this risk is four times greater. However, the difference in premium between the cheapest and most expensive insurer is more striking.

For example, third-party coverage in Veenendaal for a Peugeot 205 from 1999 at ABC Bank costs 168 euros per month, while at AVVB it is also possible for 40 euros.

Price difference for WA car insurance per month per municipality

Price difference for WA car insurance per month per municipality

The price differences were calculated on the basis of the following data:

  • 18 years;
  • 0 claim-free years;
  • Peugeot 205 ('99);
  • 8000 km / year.
  Cheapest car insurance Most expensive car insurance Price difference per month Magnification factor
Amsterdam VAC: € 53 ABC Bank: € 181 € 128 3.4
Veenendaal AVVB: € 40 ABC Bank: € 168 € 128 4.2
Franeker AVVB: € 38 ABC Bank: € 147 € 109 3.9

Car insurance costs

Car insurance costs

In addition, Lender investigated the relationship between the current value of the car and the costs of liability insurance (ie by far the most chosen cover). 24,900 premium calculations show that the average annual premium for 18 and 19-year-old car owners amounts to 981 euros. This amount is equal to 66 percent of the current value. "Assuming that young people have their cars for more than a year and a half, this means that they often have to spend more for their car insurance than for the purchase costs," said Erik Hordijk, director of Lender.

Car insurance in the name of parents?

“It often happens that young people try to put the car insurance in the name of one of the parents. As a result, the premium is considerably lower, but this is strictly prohibited, "warns Hordijk. “It may seem difficult to check for an insurer who is actually the regular driver. But when in doubt, the insurance company can conduct a fraud investigation. And then the child and parents are further away from home. Moreover, a young person does not build up damage-free years in this way. ”

Smaller difference, premiums increased enormously

Smaller difference, premiums increased enormously

Update 07-03-2017

Lender did this test again in 2017, with the following data:

  • 18 years;
  • 0 claim-free years;
  • Peugeot 206 ('00);
  • 7,500-10,000 km / year.
  Cheapest car insurance Most expensive car insurance Price difference per month Magnification factor
Amsterdam GGB € 114.32 ACB € 311.32 € 197 2.7
Veenendaal BBB € 99.91 ACB € 284.04 € 184.13 2.8
Franeker BBB € 83.72 ACB € 244.34 € 160.62 2.9

We can see here that the premiums have increased enormously compared to 2010, in most cases they have more than doubled. The difference in euros between the cheapest and most expensive insurance has also increased, while the magnification factor has actually decreased.