Those people did irritate me….
As you can see on Sjeltur.nl – we are really “watching†all the business around the financial crisis…
We put a lot of blame towards the banks en all the financial institutes – including Governments…
BUT….. yesterday I was watching some Dutch tv… in which some people where complaining about the way their bank work. Big (blaming) interviews with the bank etc etc…
I was a little surprised about this “attack of that bankâ€â€¦â€¦.
The situation of the families who where complaining;
They own (via a mortgage) an house…. and decided they needed a bit more money; to buying a car….
They go to the bank with the message they needed “some money for a carâ€â€¦â€¦ about 5,000 euro.
The bank told them at that point it was cheaper to raise their mortgage with an higher amount…
So… they ended up with about 20,000 euro and did use the rest for a new bathroom and kitchen….
At that point they took a low interest rate for just a couple of year….. (mortgage time is 30 years) – so recent they got their new interest rate….which appeared to be way higher and now-a-days they are not able to pay it anymore……
At the moment I go to a computer store – to buy a hard disk – and I get home with a complete new computer with screen etc etc….. I made that decision based on the fact that the salesman was doing an amazing job….. uh…??
So – the employee of that bank did a good job – didn’t he..??
AND NOW…. blaming him…??
Those families did sign the contracts (I just assume they where able to read) … nobody forced them….
And if they are not able to see what kind of results such a signature could give….. they should not be allowed to sign any contract…
Why the **%$ would you take more money than you need..?? Do you really expect it would all be “for freeâ€â€¦??
In this time of crisis – it is very easy to blame everybody else, but your self….….
Only solution I see; make those contracts “dumb people proofâ€â€¦â€¦
You get money – you pay way more money then you are lending…… in a term of 30 years – you pay at least double the amount. This interest rate is for 5 year – after 5 years it could be down – but big change WAY HIGHER.
Btw; I called the tv program – I want to put a formal complaint against that computer store !!
Do you have more information on this case? I’m really curious when they got the mortgage with low interest and when exactly it changed to the higher rate. And, what are those interest rates?
There is nothing weird about this interest rate; at the moment I bought my house – the interest rate was at the lowest point…
3 years later the same mortgage was almost 2% higher.
If those people decided to open their TOTAL mortgage; with an interest rate for just 3 years – their cost will be way higher. Sometimes DOUBLE.
This is the case with A LOT of people who have problems now-a-days…
They took (at the time of the lowest rate) the maximum of what they could get (with their salary) – with the warning that, at the moment the interest time was over = it could go up.
See; http://www.hypotheek-weetjes.nl/nieuws_374.htm (Dutch)
(btw – I have some people in my street who have THIS problem)
Again; buying more than you really can afford
OK, but those interest rates are from 2008. You mentioned it was “recent”, but apparently it’s not that recent, because recently the interest rates are going down. See here for an example: http://www.differente.nl/joomla/images/stories/Layout/image002.jpg
I thought, how is this possibly if it was really recent, but it turns out, it’s not. I guess the lowering of the rates came just too late for the people you’re talking about.
Lot of people have that problem from 2008 – they had 3 year before that an amazing interest rate…. – but are NOW facing the problems – as they are running out of money and making debts….
Lowering rate too late..??
Mmmh – my idea is more “they should not have stepped into this one….” – at the moment you go for a short term interest rate with no margin in your monthly payment in case of higher rates….you are going wrong…. And I know a lot of people blame the mortgage companies for handing over the “tophypotheek” = but people are still responsible for their own signature…
Very true, people are responsible when they sign it.
My comment was more of a technical nature, because it seems that people who have to change rates now, or in the near future, are lucky, depending on the interest rate they had before.
It looks like this will be temporary though, if inflation rises in a few years from now due to the insanely expanding amount of money that’s out there right now, interest rates will go thru the roof…
Sjeltur,
Off topic, but can you explain me how this ’system’ entrecard works?
I’ve my email on my blog…I’m totally lost in this, fe: I approve every day all kind of paid ads but where do they appear?
Thanks
Kindest
Hans