How can the repurchase of credit be a solution to realize new projects by being in the home ownership? Why is the redemption of credits a suitable solution for people who own their property? How does the consolidation of credits allow individuals to better manage their monthly budget? Who is the owner’s credit redemption for?
Repurchase of consumer loans without real estate credit
Very often, the monthly charge of real estate credit is not a problem for the management of the monthly budget of people on home ownership. Indeed, when subscribing to a home loan, the lending bank undertakes a study upstream in order to determine the most adequate monthly payment in relation to the repayment capacity of the borrower(s). The black spot that comes to unbalance good budget management is usually the accumulation of consumer credit contracted in parallel with the mortgage.
If the monthly charge for mortgage credit is calculated based on a household debt ratio that does not generally exceed 33%, consumer credit agreements formally and clearly increase the household debt ratio. As a result, a home can quickly end up with a debt ratio of over 50% after borrowing money to replace a vehicle that is too old, or for home improvement, and so on.
Redeeming consumer loans makes it possible to find a customized debt ratio that gives new life to budget management.
Purchase of credit with cash for works
In order to avoid a financial situation that is difficult to manage, the purchase of credit with cash for works is a tailor-made solution for owners wishing to generate cash and carry out projects. When acquiring real estate in the former, the need for cash is inevitable for home improvement and profit. For example, in the case of the purchase of a principal residence whose inhabited space represents 50% of the surface of the property, then work can be done to renovate the unoccupied part (ground floor for example), and thus rent this new space of life in order to release income from land.
The acquisition of credit with cash for works offers the possibility of grouping all the credits by including a cash envelope necessary for the realization of the works. In addition, the subscriber(s) of new plan have only one monthly payment to manage according to their budget. And this in order to avoid financial incidents such as rejection of levies or intervention fees, etc.
It is also possible to essentially group consumer loans without real estate recovery while including a cash plan. Of course, as far as possible and according to the acceptance standards of our banking partners.
Purchase of real estate credit and consumption
Redeeming real estate and consumer credit is the most appropriate solution to get off to a good start. In the event that a buyback of consumer credit except repossession of the mortgage has already made for various reasons as mentioned in the paragraphs above. The global recovery is the opportunity to obtain a real estate interest rate for all remaining capital due.
Also, in the case where the mortgage is variable rate, it would be unfortunate not to opt for a fixed rate especially as interest rates remain historically low despite a slight rise in early 2017. Although the variable rate is at a record low, fixed rates are lower.