Credit buy-back: refining your project
With very low interest rates and exceptional financing conditions, it is undoubtedly worthwhile to make a “real estate” loan consolidation. However, financing this banking operation requires fine-tuning your project.
Many borrowers opt for credit consolidation
The loan has never been so cheap. While the State into debt to 0.68% (10-year OAT), the people can get a ready property at 2.03 % on average to date.
Financing conditions, very favorable to borrowers and lending institutions, which should continue for a few months.
Thus, for households wishing to acquire real estate, the time seems opportune. For those who are already in debt but have not paid off their loans, the temptation grouping of credit has never been stronger.
More and more borrowers, from all social classes, are now opting for this alternative to ease their burdens of repayment or face unexpected. For several months, almost one in three financing has actually been a grouping of loans.
In addition, even for loans that were granted just one year ago can be subject to a credit consolidation like loans that were already bought back two years ago.
Go through a specialized banking intermediary
When buying a loan, it is very difficult (if not impossible) to obtain the current rate with the establishment that granted the loan.
The best way to get a loan buy-back under current financing conditions is to compete through a bank intermediary.
In fact, in most cases, there is no other solution for obtaining the best offers than having your outstanding amounts consolidated into one by another bank even if this means paying a few fees.
Namely, in the event of repurchase of credits by another bank, the borrower must pay the early repayment indemnities. These amount to 6 months of interest and within the limit of 3% of the capital remaining due.
In addition, he must pay the costs of re-taking guarantees, any notary fees and other ancillary costs.
In the end, these costs amount to a few hundred, even thousands of euros, but in reality they are integrated into the new financing and therefore painless for the borrower who obtains a competitive rate, which is often the case with an intermediary banking.
Opt for a delegation of insurance for your new loan
Once an attractive rate has been obtained, the borrower can also opt for another borrower insurance contract to guarantee the repayment of his new loan.
With a delegation of insurance, he can easily earn up to 30 basis points, which is not negligible for a borrower insurance contract which can represent more than 20% of the total cost of new financing.
Namely that the legislation in force makes it easy to change the borrower insurance in the context of a grouping of mortgage loans on the condition of presenting to the initial bank an insurance contract which presents at least the same guarantees as the group contract, that is to say, the one proposed by the bank.