The purchase of credit adapts to the specificities of each home. For those who are responsible for both a home loan and consumer loans, the loan consolidation allows to include or not the current mortgage. If the latter is included, it is easier to obtain a reduction in monthly payments.
The choice to include or not the mortgage depends partly on the financial conditions (duration and rate) of the current mortgage, but also the wish of the borrower in terms of lower financial charges. This type of loan consolidation involves the guarantee of the mortgage of a real estate property.
Only the owners of their principal residence or the holders of a real estate patrimony can claim the repurchase of mortgage credit.
A condition applies: it is essential that the market value (or market value) of the real estate property cover the total amount of the repurchase of real estate credit and consumption (including a possible cash flow).On the other hand, if the property is held in joint ownership or dismemberment, it must necessarily be approved by all parties to put the property as collateral for the loan.
The bank takes your property as a real guarantee, which implies less risk taking for the establishment.
Indeed, the combination of a repurchase of real estate credit with a repurchase of consumer credits constitutes a repurchase of mortgage credit. The latter provides the bank with additional leeway.
Unlike the simple purchase of consumer credit, for which the repayment term is limited to 12 years, the duration of a home loan and consumption with mortgage can extend up to 360 months. As a result, the ability to reduce the borrowing burden on your budget is much greater when real estate credit is integrated into the credit pooling operation.
The repurchase of mortgage and consumer credit being backed by a guarantee of repayment reinforced by means of the hypothec, it makes possible the obtaining of better financial conditions. The bank that buys the mortgage loan takes less risk and therefore can offer you a more interesting interest rate than a simple purchase of consumer credit.
By limiting the annual financial cost (ie the amount of interest), again this operation gives rise to additional room for maneuver to reduce the monthly borrowing burden and thus free up a larger disposable income.
When talking about a mortgage credit, the intervention of the notary is essential.
The notary will manage the land registration of the guarantee. You will be accompanied by your broker in order to carry out the necessary steps in all serenity. Your credit redemption broker contacts the notary upstream. The mortgage is effective throughout the loan. At maturity or in the event of early repayment, it is automatically canceled after one year.