The repurchase of credits consists in grouping all its loans, personal and real estate contracted, with one or more banks in a single contract. The repurchase of mortgage is especially useful for those who have not correctly calculated the risks of over-indebtedness. To proceed, it is recommended to study the means of consolidating the loans with a single credit in each particular case, since this entails a significant cost due to interest and commissions among other associated costs.
The concept of mortgage redemption is very simple to understand. This consists of grouping all the loans taken out with one or more creditors into a single credit to save on the interest rate and other expenses. This financial operation can be a solution to get through a difficult period, but in some cases, it can lead to even more difficulties (in the medium or long term) for a borrower who is already suffering from a fragile financial situation.
Many households accumulate payments from different loans, between real estate credit, consumer credit (car, travel, etc.), it can sometimes be difficult to pay all the monthly payments. In this kind of situation, one of the solutions is to buy back credit at a better rate. Through this operation, you can consolidate all your loans or obligations into a single monthly payment. This is to take out a new credit uniting all your previous loans with a better rate.
Thanks to mortgage buyback solutions, it is generally possible to negotiate a more advantageous interest rate with your bank and thus save money on monthly repayments. In addition, we must emphasize the convenience of having to pay only one loan each month. In this sense, it is possible to better control your finances through the consolidation of all your credits.
The main objective of this type of loan is always the same: to save money and better control your personal finances. Banks and credit organizations that offer this type of financial transaction, make sure to offer a second chance to borrowers who are in an unfavorable financial situation. The repurchase of mortgage is indeed a very advantageous option for people who, for one reason or another, pay several loans at the same time.
Among all the credit consolidation formulas available, the repurchase of real estate credit is the most used in France. In the event that you have to make several payments each month, with different percentages of interest and different deadlines, it is likely that the repurchase of credit is the best option. Not only in terms of savings, but also for the convenience of dealing with a single fee.
Now that the concept of buying back credits is sufficiently clear, it is useful to take the time to understand how to proceed to consolidate your loans, because although this practice is increasingly widespread, not everyone knows how to carry it out. GOOD. But before going any further, it should be noted that the best way to find out if redemption is an option is to use a mortgage redemption simulator.
The repurchase of credit is contracted in the same way as a loan. The process is very simple, just make a request to the bank of your choice so that it can study your file and determine what is best for your particular case. With a credit redemption simulator, you can calculate your new monthly fees. There are different options on the market, among which you can find formulas to consolidate all your loans with better payment terms.
The repurchase of real estate loans can be requested from banks and organizations specializing in loan products. As a general rule, it is recommended to request it from the establishment where you have the most loans to consolidate all your credits. In this sense, if all your loans are taken out with the same bank, it is best to contact your banker to negotiate and obtain better credit conditions.
It is advisable not to resort to a repurchase of mortgage if your debt exceeds 60% of your income and that you find yourself in a situation which does not allow you to assume the payments. Indeed, the repurchase of credit should only be considered as a solution to the inability to pay. In this context, it is advisable to consult an expert capable of analyzing your case and indicating the most favorable solution.