Unique loan and monthly payment, reduced debt ratio, increased purchasing power… The reasons pushing a borrower to make a grouping of loans abound. But who says repurchase of credit under the status of single says only one salary to proceed to the repayment of the monthly payments. You are probably wondering if the bank will give its approval in such a situation. It’s a great question. Answer in this article!
What is the point of grouping credits?
Whether a credit consolidation concerns real estate type loans or consumer loans, it constitutes a solution in the event of excessive debt. By redeeming his credits from the bank, the single borrower has only one credit, with a monthly payment and a single rate. He also sees the duration of repayment of his loan lengthened. Result? A lower monthly payment. A single credit buyout therefore allows the borrower to better manage his budget.
Note: borrower insurance, really optional?
Yes and no… According to the regulations, the borrower has no obligation to take out insurance. And this, regardless of the type of loan repurchase (consumer or real estate). However, it is often required by the bank. The good news is that the borrower is entitled to take out insurance with a competing establishment!
Of course, the lower the loan repayment rate, the more attractive the transaction will be for the borrower. With this in mind, the best is to use online simulation tools and comparators. By benefiting from a low rate for its grouping of loans, the borrower can aim for a longer repayment period. A way to quickly get out of an excessive debt situation, while keeping a low monthly payment and without it having too much impact on the total amount of the loan.
Credit repurchase: an operation adapted to each situation
Whatever the personal situation of the borrower, including if he is single, a credit consolidation is possible. All that will interest the bank, in a context of repurchase of single credit, it is the wages, the remainder to live and the professional situation of the applicant. These three elements will condition his decision and allow to know if the borrower will be able to reimburse his new monthly payment according to the chosen duration.
Mortgage backed by loan repurchase: what is the maximum amount for a single person?
Need additional cash to finance real estate, in addition to buying a single loan? The amount granted by the bank will depend on the situation of the borrower, single or not. It will generally not exceed:
- 100,000 dollars if the borrower is a tenant;
- 200,000 dollars if the borrower owns but does not mortgage his property;
- 400,000 dollars if the borrower has sufficient collateral (surety, life insurance, etc.).
This amount can go beyond 400,000 dollars if the borrower makes a mortgage on the property he owns.
What is the maximum duration for a consumer credit buyout?
Concerning a redemption of single consumption type credit, the maximum repayment period is the same as for any other borrower, namely:
- 15 years for owners;
- 12 years for tenants.
This, provided that the age of the borrower at the end of the repayment period is respected (75 to 85 years). The same rule applies for a home loan buy-back (maximum age: 85 to 95 years).
Single credit repurchase: why trust us?
Whether you are single, married, widowed or divorced, we make no difference and study your credit consolidation file in the same way. First, we assess your repayment capacity to ensure that you will be able to support the monthly payments on your loan. Then, we measure your risk profile, in particular with regard to your situation and the duration of repayment. Then, we adapt the borrowing rate to this. So even a borrower with a more fragile financial health can borrow from us!
A final answer is given to the borrower within 24 hours of receiving his signed loan consolidation contract and his complete file. The electronic signature, artificial intelligence and the possibility of transmitting the supporting documents in a few clicks (or via a mobile, taking photos) are all available and allowing to activate the procedure.