The repurchase of credit can be an interesting operation if you include a mortgage and consumer loans which can, under certain conditions, benefit from the low rate obtained for the mortgage. This measure is perfectly legal. We tell you everything!
Credit repurchase: how does it work?
A credit repurchase transaction makes it possible to combine several credits into a single loan by renegotiating the rate, duration and amount of the monthly payments.
Simple and fast, this operation allows you to consolidate all your debts in one financing and therefore to reduce your monthly payments and your debt ratio by extending the credit duration.
Do not hesitate to ask your bank and if it refuses, know that there are banking organizations specializing in the repurchase of credit.
Mortgage and consumer credit: it is possible to include everything
A credit grouping can relate to your mortgage as well as your various consumer loans. Work loans, cars, staff, revolving credit may be affected by the consolidation operation. It can even include a bank overdraft, personal debts (late rent, tax, etc.) or an additional sum for a new project.
With interest rates that are currently very low, there is no doubt that you will be able to take advantage of a lower rate and therefore reduce your monthly charges. You have only one direct debit and your monthly payments are reduced, which allows you to give air to your budget.
How to benefit from the mortgage repurchase rate for consumer loans
The grouping of credits is already advantageous when it integrates several small credits, whose rates are mechanically higher, or revolving loans. In the context of a repurchase of credit involving immo and conso, the law says that if the remaining capital due from the mortgage loan represents more than 66% of the total amount to be repurchased, the rate in force of the repurchase of mortgage credit will apply to the whole operation. In short, you benefit from a very low rate including for your purchase of consumer credit!
And the earlier you intervene in the repayment schedule, that is to say, the more capital you have to repay, the more likely you are to benefit from this measure. When you know the high rates of consumer credit, the interest of the operation is not to be demonstrated!