Up to what age can one benefit from the repurchase of credit?
The repurchase of credit or loan restructuring is an operation making it possible to reduce the monthly payments to be paid in return for the extension of the duration of the new credit. Borrowers who are victims of a drop in income and the unexpected are often asked for this solution.
Age is an important criterion to benefit from credit consolidation. The maximum age at the end of the loan varies from one bank to another and according to the nature of the loan repurchase.
The maximum subscription age for credit repurchase
Because of the uncertain reimbursement of debts, financial institutions often show reluctance to grant a grouping of debts to people of advanced age. Indeed, with age, loss of autonomy, the risk of disappearance is higher. This is why, the financial organizations limit the maximum age of this operation to approximately 75 years within the framework of a repurchase of consumer credit.
That is to say a grouping of debts which include only consumer loans, revolving loans, restricted loans, LOA, bank overdrafts, unpaid rent invoices etc. For an owner borrower, this age is limited to approximately 85 years. We speak of grouping of real estate debts when the amount of the home loan is equivalent to 60% of the borrowable amount. This operation includes mortgage, revolving loans, consumer loans, restricted loans, works credit, various social and tax debts, etc.
As for the repurchase of mortgage credit, that is to say, a restructuring of debts with a real estate guarantee, the financial organizations often propose an age limit going up to 85 years, even 95 years according to the amount to be restructured. This type of debt consolidation makes it possible to group together the same credits as the grouping of consumer debts, by also adding home loans and work credit.
What are the advantages of opting for a loan buyout with controlled extension of the duration of debt repayment?
The repurchase of credit is initially a banking technique allowing to repurchase its credits in progress near its former creditors in the idea to allow the borrower to profit from a single reduced monthly payment. This financial arrangement is often accompanied by an interest rate negotiation so that the borrower can have a financial gain with the difference between the rate of the mortgage and the new rate of the loan restructuring.
When arranging this loan buy-back, the financial institution can propose various proposals to the borrower which are compatible with its current debt ratio. As a reminder, the debt after the implementation of this operation must not exceed 33% of the subscriber’s income. The repurchase institution can offer either a softened monthly payment with a staggering of the duration of the debt repayment, or a lower rate, depending on market conditions, or either a slightly weakened monthly payment in order to reduce the total cost of the operation.
The first solution is the most frequent because the consolidation of debts is supposed to reduce the amount of the single monthly payment. However, it risks exploding the total cost of the operation, especially if the amount of debts to be grouped is substantial.
The right balance should be sought between the amount of the single monthly charge and the duration of the reimbursement. It is for this reason that loan applicants often use a buy-back simulation tool. This tool, present at the top of this site, helps them not only to simulate this operation but also to preview the total cost of this arrangement, the duration of the reimbursement, the amount of the single monthly payment and the debt ratio to which it can claim. The simulation is completely free and without obligation.