Loan and Credit starts with mortgages
Internet bank Loan and Credit has made a decision to enter the mortgage market. And they offer a loan that is a little different from the other players.
If you look at the mortgage market at the moment, there are basically two different players. These are the ones that either lend money to standard loan applicants and examples of such lenders are the big banks. Then there are also players like Bluestep who target people with payment remarks or other reasons for slightly worse credit ratings.
Loan and Credit intends to target
Another part of the market and these are the ones that already have very good economies. The loan they offer is only for those who already have at least USD 3 million in savings capital. It is also only possible to borrow up to 50% of the value of the home and this value should be between USD 1 and 10 million.
So these are very demanding requirements, but there is also a good advantage with their loans. The interest rate is on the repo rate plus 0.99%. Which means that the interest rate is currently set at 1.99%. Which can be compared to the other lenders’ list rates, which are about 1% higher.
The loan is very advantageous
Compared to loans from other lenders which makes it attractive for those with a lot of money saved. The idea itself I also think is very good as those who already have savings capital of +3 million and who only mortgage up to 50% must be considered safe borrowers. Which in my eyes should also mean that you can borrow money at a lower price.
It will be interesting to see how this will turn out. Because I think most new products that come into the loan market are good. If they do not fit enough people there will also be no success and they will disappear with time. If there is a sufficient demand, the type of loan lives on and can fill a void. Just wait and see how it gets here.