It is not always possible to lend to your intended home with the big banks where interest rates are normally lower. The question then is how much more expensive it will be in Norko if you can turn to Bluestep, for example.
We here at the site never advocate that one should borrow unless there is a sufficiently good economy behind to manage the repayments.
This would not have been serious by us in any way. However, many in this country are not approved by the big banks for various reasons. Then a lender like Bluestep comes into the picture.
In principle, they have chosen to focus only on this type of customer. Therefore, they do not automatically say no to applications if there is a debt balance with Kronofogden, payment remarks, no permanent employment, etc. This is in stark contrast to the big banks where it is often very difficult to borrow in situations like these. Of course, they do not lend to anyone, but they always investigate what opportunities there are for them to get money back.
As I see it, this is a good service for just those who shop in these categories, that borrowing from Bluestep is not for everyone and the price difference that we will show here makes quite clear. But if you have no other option and really need to borrow, they are a good option.
The fact that they charge a higher interest rate is not strange in any way as they obviously take a greater risk.
Even if you think your own finances are good, there is a higher risk for a lender if there are payment remarks compared to a person with strong income and where there is no history of financial problems.
What will be the difference in Norko
It is difficult to say how the difference will be in Norko in the slightly longer term as the amortization rate can be very variable and this affects how great the cost is. However, what we can do is compare what the first month would cost, or a loan where you never repay.
As I wrote in a previous blog post, the average size of a mortgage in 2013 was about USD 1 million, which is why it’s easy to count on this right now. If you check today the variable interest rate of many of the lenders, it stands at 2.42% which gives a monthly interest rate of USD 2,017 . Bluestep charges an interest rate of 4.65% which is USD 3,875 .
The difference is thus USD 1,858 per month , which you can say is quite a lot.
As the figures show, it is really important to carefully consider whether or not it is appropriate to borrow money from them. Say you have a payment note and it will disappear in a year. Then it might be better to wait this time before buying a new home when it is possible to borrow clearly much cheaper instead. The difference is just over USD 22,000 per year which makes it interesting to wait.
One basic tip we would like to give for those who choose to borrow from Bluestep is to choose variable interest rates. In this way, you have easier to move your mortgage into a cheaper lender in the future. Because once you have got a little better order of your finances in the eyes of the banks, you should preferably try to transfer the loan to one of them.