What are the conditions to benefit from the repurchase of credits?
To benefit from the repurchase of credits it is necessary to enter in “boxes”. Each bank accepts a certain bank profile . The criteria may vary, but it is mainly these:
- CDI, and long-term income in general, in particular for the liberal professions and entrepreneurs or managers,
- CDD with a certain seniority in the company or the function,
Nevertheless, certain criteria are unacceptable, and we will prevent obtaining the refinancing of the person. These are for example the following cases:
- Tenants on file at the FICP (Credit Incident File for Individuals). In some cases, we can consider funding a tenant stuck in the FCC, the central file for unpaid checks.
- For owners registered with the FICP. There are, however, two banks that agree to buy back their credits, provided that their house is put up as collateral, and that the debt level returns after operation to 40% or even 45%.
- In the event of a divorce, whether it is a tenant or a landlord.
- If the borrower is a player. The financial situation is considered too unstable, so the bank does not take the risk.
- For the liberal professions, if the analysis of the last three balance sheets reveals a serious drop in the company’s income.
But what the banks look at above all is the bank balance . For example, a couple who earns 4,000 USD for two, with 2,000 USD in credits to be repaid every month. So they have 2,000 USD left to live on. Only, in everyday life they spend 3,000 USD a month. They therefore have an unfavorable “balance” of 1,000 per month, and the bank will therefore require, which is logical, to consider a financing solution, only if the drop in monthly payments, will allow them to return to balance financial. The repurchase of credit does not only suppose a fall in monthly payments, but especially a return to financial equilibrium.
Are there any hidden fees?
Since the Lagarde law of 2011, the lender is obliged to present to the borrower all the costs he will have to pay, namely:
- mandate fees (to the broker),
- application fees (at the financial institution),
- notary fees (to the notary),
- early repayment costs, generally 3% for mortgage loans and 1% of the principal owed for certain consumer loans.
What is the current market situation?
Overall, when buying back loans, the rates are stable. Fixed rates are 5% for groupings of loans with collateral and 8% for those without collateral. Variable rates are 3.5% for loan redemptions with collateral. They do not exist for unsecured credit groupings.