The repurchase of mortgage allows to subscribe to a new home loan in a bank or a credit organization, in order to settle the existing one. This operation is carried out by many borrowers because it gives the possibility of finding finances more comfortable, for example by lowering the amount of the monthly payment. It also makes it possible to include in the financial structure of the buy-out, additional cash and sometimes consumer loans (provided that the share of real estate to be bought back is equal to or greater than 60%). To obtain a repurchase of mortgage at the best rate, there are solutions, including online simulation tools, and several criteria that will be taken into consideration.
Some notions about rates in a credit surrender
A successful credit redemption is not necessarily the one that gets the best rate, even if this criterion is important. If the borrower can not cope with a monthly payment too heavy, it would be better to improve its financial situation, he thinks to lower the amount of the monthly payment. It will thus be able to find more serenity to face the daily newspaper.
The rate for a repurchase of mortgage will depend on several criteria:
- The profile of the customer: it should be as positive as possible, that is to say a customer who does not have too many payment incidents in his banking history and who enjoys a stable professional situation with income fixed every month. The borrower profile that shows late payment or otherwise, is necessarily less appreciated by financial institutions. The rate they want to give it will tend to be higher.
- The rental situation is also an important element to take into account. Being a tenant or owner will play in obtaining the interest rate of a credit.
- The nature of the repurchase of credit will have an impact on the proposal of the interest rate. If it is a transaction involving only a single repurchase of real estate credit, or a repurchase of credit including a mortgage and conso credits, or including a new real estate project or work.
- An important element to be aware of is the duration of the credit. The longer the term of the credit subscribed, the higher the rate, hence the interest of repayment in the shortest possible time. Be careful, however, the debt ratio and the rest to live which must be within a reasonable limit. Namely, for tenants for example, the maximum repayment period granted for a repurchase of credit is 12 years.
- The bank or credit institution chosen because some institutions are more flexible and others much more strict. To benefit from the best current rate of repurchase of mortgage, it is possible to make a simulation online, or to apply to a broker specialized in repurchase of credit.
What can you do to get the best rate?
The repurchase of credit makes it possible to buy back one or more loans in progress. It presents itself as a solution for people whose monthly repayments are too high compared to current household income. They will thus be able to repay only one monthly payment, which will bring them more comfort in their personal finances. The purpose of such an operation is to define a duration and a monthly payment that correspond to the requirements but especially to the repayment capacity of the borrower, while taking advantage of a renegotiated rate and especially revised downward. In the case of a mortgage, the buyer will be able to benefit from the best rates of the moment.
The first step is to know the total amount of debt to buy back, in order to optimize the purchase of credit. Then it will be very important to turn to a serious and recognized credit institution. Above all, never sign the first offer received because to find a repurchase of credit at the best rate, it is important to play the competition. Some sites on the internet offer a quality service, offering the user a comparator of credit redemption to get the best rate. By simply completing a free form, the comparator will compare the offers of its partners and offer the best offer and the best rate. This process, which lasts just a few minutes, allows for a first comparison of offers and rates, without providing any proof.
Taking care of your borrower profile, presenting a complete file and, of course, stable incomes and a healthy financial situation are all criteria that will make it easier for banks and credit organizations. Objectively, a request to buy credits from two people working on permanent contracts with good income, is more likely to get a better rate than a file with a fixed-term employee for example. It is important to keep in mind that one should not hesitate to play the competition because each establishment has its own conditions and offers. Often they offer attractive rates to glean new customers.
It will not be necessary to look only at the interest rate, but pay particular attention to the amount of the proposed monthly payment, just as the total amount to be refunded will be decisive. Pay attention also to the borrower insurance which is obligatory in the context of a repurchase of mortgage and whose price will affect the total cost of the operation.
The role of the banking intermediary in adjusting the rate
The banking intermediary is a broker responsible for obtaining the best terms from banking partners. The profession defined as an intermediary in banking and payment services (SBO) is highly regulated and supervised. As such, the broker is competent in terms of grouping credit of any type.
There are many advantages to go through an SBO to make a buy back credit, especially since it has a more or less extensive network of partners, to ensure its customers the best conditions and therefore the best rates. In addition, to facilitate their search on the net, they often have effective tools, such as an exclusive questionnaire to obtain a first assessment very quickly and especially the ranking of the best rates of the moment.
A borrower alone in front of a banker will certainly not have the same weight as a credit broker who presents him throughout the year, a significant number of files. It is obvious that it will work in his favor to obtain the best repurchase rate of real estate credit. Directly in relation with the real estate hubs of banks, thanks to the flow of new business they bring, brokers have more influence on the offers. They report to the banks a large volume of loans, which has the advantage of more favorable negotiations.
Aside from its bargaining power, the broker has a range of skills varied, it has particular technical knowledge in the mounting of credit to subscribe, as required by law. Among other things, the broker warrants an increased knowledge of the market, and the solicitation of different banks will be based on the request for redemption and the profile of the borrower to adjust the rate depending on the situation.