The recourse to the repurchase of credit can concern a mortgage and one or more credits conso. In both cases, it is possible to negotiate the subscription conditions.
Whether it is a repurchase of real estate credit or a purchase of credits conso, this operation will be more advantageous for the borrower who manages to negotiate the interest rate, the fees of file of the new loan and the borrower insurance. Our advice to negotiate your loan buyout.
What is the redemption of credit?
Credit redemption is a financial transaction that consists of consolidating several existing credits into one. In return for an extension of the borrowing period, the subscriber benefits from a decrease in the amounts of the monthly repayments. In other words, the repurchase of credit amounts to exchanging a debt that is too heavy in the short term against a larger debt in the long term.
This operation has several advantages for the borrower: simplified financial management, a decrease in the overall debt ratio, the possibility of benefiting from a lower rate. Be careful, however, to properly assess the total cost of the repurchase of credit that requires the borrower to pay certain fees (prepayment fees, processing fees, warranty fees …).
Negotiate the interest rate
The negotiation of a repurchase of credit relates to the same points as a conventional credit. Thus, the borrower has every interest in redeeming his debts at a lower rate than the previous one. Indeed, the lower the rate, the lower the cost of the operation. Negotiating the rate of repurchase of credit during a favorable period allows for significant savings. To put the odds on your side, do not hesitate to put forward your profile and possibly repatriate some savings booklets or other banking products.
Negotiate the fees
Fees vary depending on the banking organization and can only be required after the signature of the credit repurchase agreement. Spread over the entire repayment period, they can represent between 1 and 7% of the amount of credits redeemed. These fees are part of the negotiable points. The bank may decide to cut them or reduce them to a symbolic level.
Negotiate credit insurance
If insurance is optional in case of purchase of conso credits, it is essential with a mortgage. Indeed, this insurance guarantees the lender to recover the outstanding capital in case of death, disability or incapacity of the borrower. Loan insurance can represent up to 30% of the total cost of credit. To lower its cost, it may be wise to play the competition using a free online comparator and without commitment. As a reminder, since the implementation of the Cogilaw Company, it is possible to take out loan insurance different from that proposed by the bank provided that the principle of equivalence of guarantees is respected.
Know that a broker can also help you negotiate your purchase of real estate or consumer credit. This professional perfectly masters the levers of negotiation.