The redemption of credits is a transaction that can be carried out in the same way as bank loans, at fixed rates. Thus avoiding the customer to assume the risk of a sharp increase in rates.
The repurchase of credits: fixed rate
In France, for several months interest rates for real estate and consumer loans continue to decline, which drives some borrowers to want to buy their outstanding to enjoy these historically low rates. Other borrowers use this banking operation in order to benefit from a reduced monthly payment, that is to say they can no longer assume the repayment of their monthly payments become too heavy, monopolizing too much of their income or simply want better management of their budget. Indeed, the reasons for the request for repurchase of loans are multiple, but the majority of the French claimants of this operation wish as for bank credits, to be granted fixed interest rates so as not to have to assume the risks of fluctuations rates that are based on the lender.
The rate in a loan buyback
The repurchase of loans is a banking operation that gives the possibility to a borrower to collect a portion (mortgage) or all (real estate loans and consumer) of its loans in a single loan at reduced monthly rate. This operation can be achieved through an extension of the loan term. The purchase of loans also allows customers with an affected project (purchase of a motorhome, works, travel) to be granted an additional sum to carry out this project, provided they are able to respect the terms of the contract. To complete this operation, these borrowers turn to an intermediary in a banking operation (BIO). This BIO, according to the needs of the customer will be able to propose a most adapted offer possible with fixed rates very attractive thanks to its privileged relations with the financing institutions. It is advisable to conduct a free online simulation without commitment to get an idea of the amount of the new monthly payment, and also see indicative fixed rate proposed.
- Cost of a credit redemption
- Credit for tax delay and tax debts