Discover how to benefit from small rates when buying credits with bank intermediaries.
Small rate for the redemption of credits
For different reasons, whether for lack of sufficient income to repay the remaining monthly payments of current loans or the desire to rebalance their budget, many borrowers (owners and tenants) wish to resort to the purchase of credits. Before subscribing to this banking operation, customers are eager to benefit from low rates. This is the reason why the intermediary in banking operation (IOB) is in direct relationship with several financial partners, which allows to offer several offers at different rates. Indeed, these various offers offered by the IOB thus give the opportunity to the person wishing to buy its outstanding to choose the offer at the lowest rate and best suited to its needs.
The principle of redemption of reduced rate loans
As seen previously, even if the reasons which lead people to subscribe to the repurchase of credits are different, the finality remains the reduction of the amount of the monthly payments. The repurchase of loans allows the borrower to consolidate some or all of its outstanding loans (real estate credit, for consumption) into a single loan at reduced monthly rate, thanks to an extension of the duration of the loan. The client then sees his debt ratio drop, with the decrease in the amount intended each month to repay his credits, thus rebalancing his budget. It is simple and free to visualize what this banking operation can bring to one’s personal situation by performing an online simulation to receive quantified results.
Rates of a loan redemption and loan consolidation
By definition, credit consolidation is a credit transaction that allows a borrower to obtain a single variable or fixed-rate loan, repayable over a single longer term. The amount of the monthly payment of this loan is determined by the repayment capacity of the borrower. It is therefore best adapted to its finances. As part of this operation, it is possible to collect consumer loans (personal and renewable), housing loans or bank overdrafts. In addition, subsidized and regulated credits such as the PTZ are not recommended in a credit buy-back project, since it is not always financially advantageous to include in the operation loans obtained at low interest rates (see ). However, the rates of a credit surrender are valued in the same way as those of a conventional credit (real estate and consumer). As a result, interest rates on this transaction are more attractive to homeowners or homeowners. In fact, the lending institutions think that in case of difficulties (accident of life, loss of employment, disability …) the borrower can always sell his property and pay off his debts. Conversely, rates are higher for tenants and for those who are housed free or in a professional capacity. This borrower profile represents a risk to lenders.
How to get a buyback of low-interest rate credit?
In a credit consolidation (real estate or consumer), interest rates vary according to many criteria specific to each lending institution. Thus, obtaining a group of credit at low rates is not random, the interest rate of a loan is linked to the risks incurred by the bank or the establishment of credits. The less the bank has a guarantee of a full repayment at maturity of the credit, the higher the interest rate charged. To obtain a group of low-rate loans, the borrower must produce guarantees (mortgage, bond, deposit, etc.). In case of difficulty of payment, the lender is certain to be able to cover the amount borrowed. Namely that the guarantee is based on the amount of capital borrowed, it can be a real estate, a capital saved (life insurance). In the absence of guarantees, a solid project is also a master asset to obtain a group of low interest loans. A strong record is characterized by sustainable revenues, reasonable repayment capacity and positive financial behavior. It is also possible to obtain a better rate by opting for a short-term credit. Finally, seeking the services of a financial intermediary specializing in the repurchase of credit can also be effective to obtain a competitive rate.