The repurchase of credit has several names but the purpose remains the same, the goal is to group several loans into one in order to reduce the monthly payments and allow the creditor to rebuild his financial health. When too many loans have accumulated and the subscriber can no longer follow, credit consolidation can be a solution. The repurchase of credit is also very widely used to repurchase only one and single credit to save on the interests of the loan and thus in monthly payment and total cost of the loan. This practice has been more common than ever for a few years since mortgage rates have been going down for months.
Is it always profitable to buy a mortgage?
No, this is not always a good transaction, you must first start by calculating the cost of buying back the loan, insurance and costs relating to this transaction. If the amount is significantly lower than the difference in credit rates, you can try your luck and contact credit unions or banking organizations. In certain cases the repurchase of credit is an excellent operation and it is largely possible to gain thousands of euros on the totality of a mortgage. We can advise a minimum of 0.9% difference between the base rate and the renegotiated credit.
How many active loans should you buy back?
There is no limit, you can group your monthly payments whenever you want. However, if you have no problem repaying your various credits, it is not useful to redeem your monthly payments. You still need to know that buying back credit has a cost and it is essential to understand that the monthly payments decrease but that the duration of the loan increases. A repurchase of several credits (conso, auto …) is a good operation when the creditor can no longer pay his different monthly payments.
Where to buy back your credits?
A lot of organizations offer this service, you can start with your bank to get a first opinion. Always ask for at least three different opinions and quotes for your buy-back!