If the consolidation of credit is known to allow to reduce the monthly payments, this operation also responds to a need for financing, that is to say to allow a household or a household to be able to invest in the stone by readjusting its repayment of credits. Instructions and explanations.
Credit consolidation: a readjustment operation
1 in 2 French people need a credit group, this statistic cannot be invented, it is a statistic from the French Banking Federation relayed by the Express which specifies that the monthly payments are considered to be high, too high or a lot too high. The use of credit consolidation is therefore logically justified to restore balance in your finances, that is to say to benefit from a reduced monthly payment and adapted to your current financial situation.
Readjustment is the key word of this banking operation, the principle of which is based on the repurchase of credits in progress, then an extension of the repayment period to achieve a reduction in monthly payments. If this operation is mainly known for this result, it nevertheless allows to finance a new project, it is possible to include in the operation an amount dedicated to a car purchase, works or even a real estate purchase.
Buying back credit to buy a house
The purchase of a house or an apartment is not obvious when the borrower already reimburses consumer loans and / or mortgage loans. There are therefore two types of borrowers who sometimes find themselves refused by banks to invest in stone. The first being the owner already having a mortgage and possibly consumer loans who wishes to buy a second property, either for a rental investment or for a second home.
The first asset can act as collateral, which therefore makes it possible to be able to use credit consolidation to finance the acquisition.
The second borrower concerned is the tenant with consumer loans who wishes to become an owner but whose debt ratio does not allow it. Reducing your monthly payments can allow you to accommodate a new mortgage loan term, but the overall debt ratio must be compatible with the financing project.
How to get a loan buyout and real estate financing?
Banks do not have the banking products necessary to allow a borrower to pool its credits and finance a new project, they will offer either one or the other but rarely both.
On the other hand, it is the credit institutions specializing in mortgage financing that can assist households in their real estate purchase project. They can be contacted directly, or through a bank intermediary such as a broker or an agent.
In fact, a borrower with a property to offer as collateral will be able to count on the mortgage ratio in order to know the amount of his overall envelope, that is to say the amount that it is possible to borrow to buy the new good. It should not be forgotten that the grouping of credits is based on the principle of extending the duration of repayment and therefore that an increase in the total cost may take place.
In any event, a loan consolidation simulation can be performed at any time with a specialized establishment, it is free and without obligation.