The repurchase of credit makes it possible to group several loans in one in order to reduce its monthly payments and to regain purchasing power. It can be set up to consolidate several credits, and it is therefore possible to group two real estate loans for example. What are the specific conditions for this operation?
Consolidation of loans to rationalize its debt
The credit buyback consolidates several loans into one to reduce its monthly expenses. By collecting all its credits, the borrower extends the duration of the credit but benefits from a monthly payment better adapted to its repayment capacities. The operation also helps to lower its debt ratio or even to consider new projects.
How to group two real estate loans
When grouping several credits, it is not necessary for them to be of the same nature (consumption, real estate, etc.). The grouping can thus concern two mortgages, whether they finance the same property or two different dwellings (principal residence and rental investment, for example) Only one property can serve as a guarantee for both loans, but it is also possible to take a double guarantee.
To find out the terms and conditions of the credit redemption according to the loans to be repurchased, consult our section Credit redemption solutions
What conditions for it to be really interesting?
In order to benefit from a real added value, two cases arise:
if you are in the first third of the repayment, the interest rate on the repurchase of credit must be at least one point below the previous rate;
if one is in the second third, the new interest rate must be two points lower.
This allows a profit to be greater than the financial expenses generated by the buyback transaction. If the credit is in the last third of repayment, the transaction has no interest.
What are the advantages?
The interest of grouping two real estate loans is the same as the grouping of conventional loans. Indeed, depending on the outstanding amount shown in the depreciation schedule, the borrower can re-evaluate the duration of his loan. If it stays the same and the rate is more attractive, it may allow it to reduce its monthly payments and to generate a larger living income each month. In any case, having a single monthly payment allows you to better manage your budget.