The rates are still very low and this can be a real opportunity to seize. Some people, therefore, rush to buy back their mortgage, but this is not always a good idea, it will depend in particular on your situation and will not allow you to get rich, but to make only a few savings. In this article, we invite you to discover if it is completely essential to have recourse to credit repurchase regardless of your case.
The principle of credit repurchase
First of all, it is important to understand the concept of credit repurchase in order to know if it can be beneficial or not for you. You should know that many banking establishments will offer to group your credits into one, and thus make you benefit from a single monthly payment. The offer can often be attractive, because you will notably be able to take advantage of less substantial monthly payments. Be aware that it is important to note that your monthly payments will certainly decrease, but that your reimbursement will be made over a longer period.
When you are going to carry out a grouping of consumer credits, it is the law of these credits which applies. However, if you combine several different credits, including a mortgage, the law of the mortgage will apply when 60% of the credits are represented by real estate.
The advantages of buying back credit
We also suggest that you discover the advantages of buying back credit:
- A rebalancing of your monthly budget with in particular a reduction in your monthly payments. However, don’t forget to note that your repayment tenure will be systematically extended.
- In particular, you will be able to recover a certain amount of purchasing power every month, because you pay back less dollars every month for your credits.
- Know that credit consolidation is perfect for all people who are or are at risk of being in debt. Indeed, this allows in particular to avoid being filed with the Good Lenders Bank.
- Finally, this credit buyout will notably allow you to put an end to your revolving credits. Thus, you will no longer have any variable rate credit, but only loans with fixed rates.
Can everyone benefit?
In order to be able to benefit from a loan buy-back, it is then necessary to fulfill certain strict conditions, including in particular the following:
- Have regular income
- Possibility of benefiting from the repurchase of credit while being file with the Good Lenders Bank, but only if you are owner.
- If you are prohibited from banking or if you are currently on sick leave, you will not be able to benefit from a loan buy-back.
- It is necessary to complete a complete application for the redemption of your credit.
- If you have had the good fortune to take advantage of a loan buy-back in the past, it is quite possible to benefit from another after one year and only if you have encountered any problem during the repayment.
You could say that buying credit allows you to benefit from many considerable advantages, but it simply depends on your financial and personal situation. In order to benefit from it, you must first meet certain conditions. In addition, if you have already repaid more than half of your loan, the credit repurchase is not attractive, because the costs will be too heavy to bear. It is therefore important to think carefully about your repurchase of credit before embarking on this adventure, in particular by weighing the pros and cons, and by being advised.