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Negotiating the rate of your credit surrender is a very important step. If done right, it will allow you to make significant savings on the total cost of your credit.
The borrower has the opportunity to redeem or renegotiate his credit several times in a row. By renegotiating the loan, one intends to update the terms of his credit.
This allows you to reduce the nominal interest rate of the credit, and to review in some measures your borrower insurance.
If there is not a very important difference between the old and the new interest rate, then several years will be needed to make the difference profitable.
There is indeed the presence of additional charges during the redemption credit. Also avoid doing this too frequently or too quickly.
Be careful, nothing obliges the redemption organizations to grant you a renegotiation. In addition, the conditions applied differ according to the households. In general, the rate change is done through an amendment without changing the initial contract.
You will also be required to pay a processing fee, which may vary from one financial institution to another. It is also important to differentiate between renegotiation and the repurchase of credit.
The purchase of real estate loans consists of contacting the competing credit institutions, in order to benefit from a better rate than that of your credit organization.
In general, if you plan to sell your property in the next few years, it is not recommended to redeem your home loans, regardless of whether it is a bridge loan.
If, on the other hand, you intend to keep your property for a little while, it may be interesting to redeem your credit. Be that as it may, think of making a redemption simulation first, in order to choose the one whose offer best fits your needs.
Is it beneficial to renegotiate the rate of its repurchase of credit?
As mentioned above, the borrower can redeem his credit consumption or mortgage as many times as he wishes.
However, is it really worth it? The answer to this question is undoubtedly yes, because the rate of your redemption will decrease. It must be remembered, however, that this operation generates additional costs.
The interest savings you make will be the first criterion that may cause you to renegotiate the rate of your buyback credit.
These vary according to several elements:
- the amount of the initial loan;
- the interest rate difference;
- the duration of the credit.
All of these criteria must be taken into account at the same time.
Placing funds as part of a rental investment can prove to be a great investment, especially if these investments are not risky at first glance. However, we must maintain the property rented. To do this, the lessor can apply for a work credit or a revolving credit according to his needs.
In any case, the maintenance of the property must be included in the calculation of net profitability.
The envelope allocated to its work can very quickly become a substantial budget. In anticipation of these numerous expenses, the rental investor who has several loans in progress may request a renegotiation of the rate of his buyback credit. The subscriber will see his debt ratio decrease.
What about exactly additional fees?
The prepayment penalty is without a doubt the most important of these fees. If this is a repurchase of real estate loans, this indemnity will be 6 months of interest, capped at 3% of the remaining capital.
In the case of a repurchase of consumer credit, the lending organization may claim to claim compensation that may not exceed 1% of the outstanding capital to the extent that the amount due is greater than 10 000 euros.
In addition, the prepayment penalty is capped at 0.5% if the remaining depreciation period is less than 12 months.
A new credit, a new guarantee
If you change your lending institution to benefit from a more attractive rate, this also implies a new collateral arrangement or transfer of collateral.
If you choose to transfer your mortgage, the fees will be relatively low. The establishment of a new borrower insurance will lead you to the payment of approximately 1.5% of the capital in addition.
Some tips to successfully renegotiate the rate of his credit buyback
It is important to note that a credit buyback operation involves several types of credit, namely the work credit, revolving credit and much more.
It may therefore result in an increase in the overall cost of the loan. Thus, a rate renegotiation transaction may also result in a further increase.
It is for this reason that it is advisable to be well informed about the amount of the loan and to avoid accumulating new debts after the repurchase of the loans.
Turning to a serious banking organization specialized in this type of operation will certainly allow you to benefit from a fully customized financing and in accordance with your financial needs.
To do this, do not hesitate to perform a redemption simulation on our platform. For loan seekers, the main brakes on the demand for a second rate negotiation operation remain the repayment capacity, the debt ratio as well as the financial situation. These elements are indeed studied by the banking organization before making any decision.
If you have life insurance and you need cash to deal with an unexpected expense, you can ask your insurer for an advance.
This solution has the advantage of being less expensive than a consumption credit. In addition, having life insurance may have a positive impact on your renegotiation.
In short, the borrower has the opportunity to renegotiate the rate of his credit redemption as many times as he wants. At the same time, he will be able to review his credit insurance.
However, this renegotiation is subject to the preliminary study of the file, including criteria such as your financial situation and much more. Do not forget, however, that it is essential to carry out a redemption simulation first and foremost in order to find the best offer.