The purchase of credits is often done with a mortgage guarantee when you own: get more cash to carry out a project.
the redemption of credits is relevant when you want to obtain cash but you already have difficulties balancing your budget. You are too tired for your project.
The duration of a mortgage purchase with a mortgage guarantee can be up to 35 years, which significantly changes the amount of the monthly payment of your credit (with the extension of your loans, the total cost of your loans will be increased). All credits are redeemable : consumer loans, work, home loan, car, revolving credit… whether these loans are depreciable or not. the average duration of a loan buyback with a mortgage is 20 years, or 25 years for a real estate project.
if you have debts registered with the taxes or before notaries they will be able to be taken back in your redemption of credits: debt with a member of your family, your friends or your employer. If your debt is not declared, you will need to provide proof of debit to the donor’s current account and cashing out your current account.
To give a mortgage is to commit oneself to one’s property, most often to your principal residence. For the Banker you give all the pledges of a strong commitment. the study of the risk of your file will therefore be much more favorable. A credit with a real guarantee greatly increases your chances of being financed.
The study of your file is traditional: indebtedness, mortgage ratio, remainder to live after the payment of the monthly payments, estimate of the property given in guarantee… we will carry out a simulation of your future monthly payment, if your file is complete we will have an answer Bank within a week. Within 48 hours your file will be taken care of by the partner bank selected for an in-depth study of your file. The Bank will be able to ask you additional questions, we will help you to find the right interlocutor for the answer: lawyer, notary, accountant….
we will explain to the bank together this project, you can ask for the financing of works, buy a car… or to have a precautionary savings.
You can finance a real estate investment with a purchase of credits. It will be imperative that you own another property as the Bank will require a net mortgage margin.
let’s take a practical case: you are the owner of your principal residence worth 700,000 euros, free of credit. You want to buy a studio for the studies of your daughter in Lyon whose sale price is 200.000 euros. You have in progress a credit work and a car loan for a remaining capital of 55.000 euros. the Bank will finance the recovery of your current loans and your real estate project is 255,000 euros plus fees. In this example you will be able to give only one property as collateral because the value of your principal residence largely covers the amount of the loan consolidation and your real estate investment.
The repurchase of your mortgage will be necessary to allow the Bank to take a first rank registration and without competition in guarantee of your repurchase of mortgages: the principal remaining due will be repaid by your purchase of credits, as the possible penalty prepayment. If your real estate has been donated, you bought it without credit, or your home loan is repaid, the Bank will take the mortgage first in the same way. The mortgage will be taken by your Notary.
The purchase of mortgages is reserved for the owners, by giving a guarantee to the Bank the latter will allow you to borrow over longer durations to really lower the amount of your monthly installments of credits.
You can give as guarantee your main residence, your second home, a property for rent.
You can mortgage your property even if there is still a credit in progress. the Bank will repurchase the current credit, the amount of the current credit will be smoothed over the duration of the new loan. by taking back this credit you increase your borrowing capacity.