In the event of complex repayment of property receivables and other bank loans, the grouping of mortgage loans is positioned as a solution allowing to circumvent over-indebtedness. Indeed, this financial technique makes it possible to replace the old loan contracts by a new loan with more affordable financing and debt payment conditions. Focus on the operation of a home loan repurchase.
What is the principle of a home loan consolidation?
Households that do not have the savings to mobilize in the cash purchase of a property to live or rent often use a mortgage. They can also take out other loans for personal needs if their profiles are eligible. However, the unexpected in life such as illness, the birth of a child, divorce or dismissal as well as the crisis could unbalance the budget of these borrowers. The restructuring of a home loan makes it possible to bring “air” into their finance while avoiding bank filing or foreclosure of property in the event of non-payment of monthly payments.
Here are the details of how a mortgage group works:
- This amount is accessible to all profiles provided that they meet the main criteria of the buyout establishments.
- If the amount of the mortgage receivable is more than 60% of the total loans bought back, we are talking about a grouping of mortgage loans.
- The subscriber to this financial solution can apply for additional credit linked or not to a particular consumption project (financing of development work, cash to finance a marriage, etc.).
- This arrangement makes it possible to merge the outstanding loans and the tax and social debts of a debtor into a single contract with fixed interest rate. This restructuring contract benefits from reduced monthly charges in line with the borrower’s repayment capacity. This facility allows him to contain his debt while bringing better management to his finance. In return for this reduction in monthly payments, the repayment of the new loan could be spread over a new longer period.
- This financial transaction also increases the borrower’s purchasing power with the lower monthly payments and the possibility of including a request for cash.
- The amount of income and the remainder to live, the sustainability of the professional situation of the applicant for redemption, the bank history, the debt ratio are among the key elements to obtain this refinancing. Banks generally impose a liability ceiling not to be exceeded by 33%. However, in the case of a borrower with a substantial net disposable income, lending institutions may consider the implementation of this procedure.
- The bank details and the high debt ratio do not also constitute a brake on the granting of this debt exit solution if the borrower accepts a mortgage mortgage grouping.