There are two types of a bank that can respond to a request to buy back credit. First, we identify the classic banking agencies that we will find in municipalities and agglomerations and offering retail banking. These agencies generally offer the repurchase of a pure mortgage, which is to say only the repurchase of a home loan and no other loan in progress. The idea for bank agencies is to repatriate the borrower’s bank accounts by offering him a more attractive rate than that on the loan he is currently paying back.
Mortgage repurchase is found in specialized credit institutions
If the borrower wishes to redeem a mortgage and possible consumer loans, he can resort to a transaction called credit consolidation. This solution is mainly offered by credit institutions which are simply subsidiaries of large banking groups. No domiciliation of accounts is requested, the credit institution simply offers the redemption of various debts and the establishment of new financing.
The first fundamental step before orienting your steps to find a bank is quite simple to define the type of financing desired, either a repurchase of mortgage only or a grouping of a mortgage.
Bank of credit repurchase: the borrower profile
The search for a bank in terms of repurchase of mortgage will, therefore, depend on the nature of the financing desired, but this is not the only element to take into account, it must also be based on the borrower profile. It is quite naturally the profile that will emerge from a simulation of credit repurchase. Different elements will be taken into account such as the profession (permanent contract, civil servant, retired), the amount of income, the number of people at home, the debt ratio as well as elements specific to the repurchase of a mortgage: duration, rate, amount to be redeemed. All these elements combined with each other will help identify one to several banks can respond favorably to the borrower’s request.
Obviously, the banks have different positions, some will favor the repurchase of long-term loans within particular mortgage guarantees, others will prefer to propose repurchase of a mortgage on a short duration with for example a bank guarantee. The fees and terms may vary from one bank to another, not to mention that each agency has a different commercial policy. It is therefore strongly advised to compare the offers to buy back mortgage loans with the various banks present on the market. This requires an online simulation, it is a naturally free process and without any commitment.
The choice of the bank according to the guarantee
The choice of a bank for a buyout of a home loan can also be made depending on the guarantee that will be offered. There are two types of guarantees that can be obtained for a mortgage or a mortgage loan repayment, these are the bank guarantee and the mortgage. Most banks can offer the mortgage guarantee, this consists of placing a mortgage on the borrower’s real estate and performing this procedure with a notary, the only agent approved by the State to carry out a mortgage registration. Simply put, this often involves significant costs. Between the fees of the notary and the registration fees, the invoice can quickly climb.
Some banks will offer both a mortgage and a bank guarantee. The bond is clearly less expensive than a mortgage, but it is more difficult to obtain since it is a surety company that will act as a guarantor for the borrower. If the latter does not manage to repay his monthly payments, it is the surety company which will ensure the repayment of unpaid installments, he will then turn to the borrower to recover the sums due. The advantage of the deposit mainly lies in the possibility of recovering part of the costs when the reimbursement is completed. There is also no “grip” on the property. It is, therefore, necessary to go around the different banks using a credit buyback comparator, which allows directing its request for financing to the right establishment.