The repurchase of loans is democratized. More and more French people are using this financial transaction to benefit from low interest rates. It’s also a way to optimize bank from your home in the long run. However, before initiating any process of grouping loans, it is necessary to have in mind the following five points. These elements make it possible to make the best choice among all the offers and proposals of the market.
Do not confuse repurchase of loans and renegotiation of loans
The economic situation, marked by bank interest rates “in the wake of the daisies” had consequences in the banking sector. Borrowers may have access to more favorable borrowing terms. For this, it is possible to redeem existing loans by another bank. In this case the bank is taken back as it is. There is no extension of the duration or grouping of several receivables. We are talking about renegotiation of credit. This process is proposed by all traditional borrowing organizations to reduce the overall cost of a loan.
On the other hand, the repurchase of loans offers debtors the opportunity to redevelop their debts. First, this type of rebank must incorporate at least two past claims. One can be replaced by a new cash envelope or bank overdraft. Moreover, the purpose of this operation is to reduce the household debt ratio. It is therefore the monthly charge devoted to this budget item that must decrease as a priority.
The broker, essential to have access to the best offers
Getting closer to a credit buyback broker remains the best option when you want to start a buyback process. Indeed, the commercial proposals are abundant (on the internet, attractive offers that one receives by mail, proposals of the big commercial signs). It is therefore difficult to navigate and especially to make the right choice, the most appropriate to your financial situation.
The credit buyback broker is mandated by banks that are dedicated exclusively to debt restructuring solutions. In addition, this broker manages all administrative requirements, which is very comfortable when there is little time to spend. With his expert eye, he gives sound advice so that the borrower makes the best choice.
The ancillary costs, what to expect?
Reducing its debt through the purchase of loans is also accepting the costs that are attributable to this type of operation. However, it is essential to have an idea of the different expense items and especially what is practiced on average.
The services offered by a loan repurchase broker are invoiced according to the amount of the receivable to be repurchased. Thus the brokerage fees represent on average 5 to 8% of the bank granted.
In addition, the redemption of receivables gives rise to prepayment penalties. While most consumer loans do not generate this type of expense, this is often the case for home loans. To estimate this additional expense, reference should be made to the initial loan agreements. They are, however, capped at 3% of the outstanding capital.
The bank that sets up the rebank of outstanding debts also applies handling fees. In general, this is 1.5% of the amount of the credit envelope with a ceiling of 1400 € to 2100 € from one bank to another. To these fees may be added a notarized registration fee. Indeed, sometimes the bank will take real estate as collateral. This is a mortgage that must be registered with a notary.
Combine new cash to bounce whatever happens
It is preferable to request an additional cash envelope as part of a cash pooling. The majority of households that engage in loan consolidation incorporate this option to gain more flexibility after the transaction. These availabilities could prove useful in case of unforeseen expenses or even in order to concretize projects (works, car purchase).
The purpose of the transaction is to obtain a single monthly payment adapted to the repayment capacity of the subscriber (s) through the restructuring. The goal is no longer to use the bank on credit, finally at least make as little as possible. The advantage of a combination of loans with cash is to integrate into the bank plan the cash envelope needed to carry out its projects while maintaining a monthly charge of controlled credit.