The repurchase of credit makes it possible to group its receivables in a single reduced monthly rate. Many borrowers use this solution to regain purchasing power or to improve their financial situation.
The duration of a credit surrender varies according to the nature of the transaction and the profile of the borrower. Indeed, the debt ratio must not exceed 33% of its net income. What is the optimal duration of a loan consolidation? All the explanations.
12 years for a buy back of consumer credit
As a reminder, the purchase of consumer credit consists of consolidating into one single monthly payment at least two credits conso. These may include personal loans, car loans, work loans, revolving loans or bank overdrafts.
The duration of a loan consolidation depends on criteria related to the borrower’s personal circumstances and the nature of the transaction. For a buyback of consumer credit, the maximum duration of the new loan is set at 12 years.
25 to 25 years for a repurchase of mortgage
In the context of a repurchase of real estate credit with surety by a third party or a specialized organization, the maximum duration is of 25 years. A guarantee is often necessary to convince the bank to set up this financing solution. The surety then agrees to pay the monthly payments if the subscriber proves to be in default.
In the context of a mortgage-backed mortgage purchase, the maximum term is generally between 30 and 35 years. Recall that the mortgage is a notarial deed by which the borrower agrees to return his property to the creditor in case of default. If the subscriber does not honor his financial commitments, the lender will be able to obtain the sale of the immovable as collateral and be paid for its price.
Duration of a credit surrender: the profile of the borrower counts
To offer a credit repurchase period, the banking organizations have their own analysis grid. The financial situation of the borrower will be carefully studied by the lender who wishes to ensure that his client is able to assume the payment of his new monthly payment.
Like the costs associated with the repurchase of credit, the duration of the transaction can be negotiated. Thus, nothing prevents the borrower to compete to find a more advantageous offer based on his profile and in particular its ability to repay and its current level of indebtedness.
Credit buyback: what is the optimal duration?
A borrower always has an interest in getting into debt in the shortest possible time. To determine the optimal duration of a credit surrender, two factors must be taken into account: the maximum amount that the borrower can devote each month to the payment of monthly payments and the financial effort he is willing to make to repay his loan. debt. The amount of monthly repayments, however, must not exceed one third of his disposable income.
To find an optimal credit buy offer, it is strongly recommended to compare offers online. By comparing several commercial propositions, you will be able to select a contract adapted to your expectations and objectives.