A couple with a monthly income of € 2,822 and 2 dependent children accessing the property have accumulated wishes in addition to a mortgage. In order to reduce their monthly credit payments and finance a new project, they want to buy back credit. The outstanding capital of all their receivables amounts to € 116,451.
Before restructuring, the household's debt ratio stood at 57% after the operation and is now 32%.
This example is provided for information only, it is non-contractual and may change over time. It was carried out on the basis of financing of € 135,000 over a period of 18 years, at a fixed APR of 4.5% excluding insurance, monthly payment of € 913.04 total cost of the credit € 197,216.64. The amount of this loan buyback includes the financing of a new project of € 8,000, the miscellaneous costs amounting to € 10,500: early repayment, file and notary (as part of a mortgage buyback ).
A change in situation or a new project sometimes requires taking stock of the various loans that have been contracted. Finding a lower interest rate, reducing monthly repayments are essential prospects for reducing the burden of debt and giving new life to its cash flow. This solution involves the repurchase of credit, an interesting financial transaction even essential in certain situations.
Whether it is real estate loans or consumer loans, it is possible to group them together to obtain a better rate or an extension of the duration of repayments: this is called the repurchase of credit . The organization that offers it buys back the various loans contracted and brings them together in a single loan, with an interest rate and a more interesting duration for the borrower. We can, thus, spread its repayments over a period of up to 12 years for consumer loans and up to 30 years for mortgage loans.
The repurchase of credit can concern different personal loans: consumer credit affected or not, late payment, reserve of money ... It can also include real estate loans.
By cumulating the loans, we sometimes arrive at a debt ratio that is impossible to bear on a daily basis. The repurchase of credit makes it possible to rethink the amount of monthly payments: it offers a lower repayment each month, because more spread out over time.
It can also offer a more attractive interest rate than the rate initially granted for a mortgage.
Finally, the repurchase of credit makes it possible to reduce the administrative costs of the various credits, since we have only one financial interlocutor.
When one owns a property, the repurchase of mortgage credit makes it possible to obtain more advantageous conditions : in fact, the mortgage committed on his property is a reassuring guarantee for the lender. A certain percentage of the value of the real estate assets is granted in the form of a loan: thanks to this inflow of money, any type of project can be carried out, at an attractive interest rate.
It is thus easier to get out of a situation of over-indebtedness or to invest in a new real estate project.