The principle of credit repurchase consists in increasing the total duration of repayment of the single loan subscribed in order to lighten the monthly payments and restore a balanced budget. In theory, there is no limited number for this type of operation. In other words, by respecting certain conditions, a borrower can make a second repurchase of credit, a third, etc. The question then arises legitimately of the maximum duration of a credit buy-back.
Indeed, the age of the borrower ends up obstructing this operation, the lender having to ensure that it will be able to fully repay the loan repurchase. So what is the duration of a loan buy-back? Is it possible to request a long-term credit buy-back? We will see that everything depends on the nature of the credits repurchased, the profile of the borrower and the policy followed by financial institutions.
Maximum duration of a credit buy-back: what are the conditions of the lending organizations?
The grouping of credits carried out with a banking establishment or other financing organizations meets certain conditions of feasibility and eligibility. Feasibility corresponds to the question “is the operation possible?” »While eligibility raises the following question:« is the borrower eligible for such an operation? “
If the lending organizations have complete freedom in the study of credit repurchase files, they still refer to certain tacit standards. This is the case with the maximum duration of a credit buy-back. The number of years is notably fixed in relation to the nature of the loan granted.
What is the maximum duration of a consumer credit buy-back?
The maximum duration of a consumer credit buyback can be up to 12 years, or 144 months, in the vast majority of consumer credit consolidation offers currently marketed on the market. This limit is however suspended from respecting the age at the end of the loan.
As a reminder, the age limit granted at the end of a loan for the repurchase of consumer credits is 85 years, whether the borrower is the owner of a property or whether he is simply a tenant (implying less wealth that can serve as loan guarantees for the lending organization).
Home loan repurchase: what is the maximum duration?
The maximum duration for a repurchase of mortgage with a mortgage guarantee is 30 years. It even increases to 35 years, or 420 months, with certain banking establishments. On the other hand, the maximum duration for a grouping of mortgage loans involving a bonded loan is shorter but can still extend up to 25 years, or 300 months.
For information, a mortgage consists of placing your property as collateral to obtain the repurchase of credit. This mortgage guarantee is nevertheless limited to 70% of the value of the property, without taking into account any income.
The guaranteed loan allows the borrower to guarantee his repurchase of mortgage by appealing to a guarantee organization. This joint guarantee in the eyes of the lender has the advantage of avoiding paying the costs of taking out a mortgage and releasing the guarantees granted by the State. This does not preclude paying the organization both a surety commission and a contribution collected for the Mutual Fund.
Maximum duration of repurchase of credit: the profile of the borrower also counts!
Credit consolidation is a negotiation between two parties: the lender and the borrower. During the discussions that intermediaries can conduct on behalf of the person requesting the repurchase of loans, everyone has the right to put forward arguments to finalize the best possible contract. Among the elements of negotiation, the duration of redemption of credit has its place!
Each credit repurchase file is different, especially since each lender has its own analysis grid. If the latter can impose its conditions a priori, nothing prevents the borrower from competing to find a more advantageous solution based on his profile, his personal, professional and financial situation, his repayment capacity and its current and future debt level.
By comparing the commercial proposals formulated, the subscriber will thus be able to choose the maximum duration of the repurchase of credit which interests him the most, according to his expectations and his objectives. This repayment period is moreover an important criterion for assessing the reduction in the amount of the monthly installment payable, therefore the overall cost of the new loan contracted.