Despite the slight rise in interest rates and the change in banks’ commercial policies, credit surrender conditions remain attractive. However, we must know how to put all the chances on his side to be eligible and claim the best rate in force.
Know how to seduce and reassure banks
To obtain the financing of a repurchase of credit (real estate, consumption), it is imperative to be able to seduce the banking institution or its intermediary solicited for the project by presenting a solid file. It is also necessary to reassure the lender by highlighting the stability of his professional situation and the serenity of his banking behavior. Several tips can be more credible and especially more reassuring in the eyes of a bank or its intermediary. Banks do not like to take risks, they always prefer borrowers with professional strength and in this case a permanent employment contract (permanent, civil servant). We must therefore insist on the regularity of his income.
To know that even if the other types of employment contracts (fixed-term, apprenticeship contract or liberal professionals) are not prohibitive, the process could require more documents and the financing could be also more difficult. To present a solid and reassuring file to banks as part of a loan buyback, it is recommended to seek the services of a banking intermediary. The missions of this specialist are among others: the identification of the factors that can penalize the financing of the project, advise at best his customers on the consequences of the operation, the accompaniment of his customers.
Attention to the ability to repay and the rest to live
As one of the main purposes of a credit buy-back project is to reorganize a borrower’s financial and budgetary situation by re-adjusting the amount of its maturities to its net income, the banking institutions pay particular attention to the ability of the borrower to repayment and the remainder of a borrower’s life. These two elements are scrupulously examined and will allow the bank to make an offer of financing allowing the borrower to better manage his finances without being badly indebted. In other words, the repayment capacity confronts all the subscriber’s expenses with its actual income in order to determine the percentage of resources that must be allocated to the repayment of the credit. This allows the bank to ensure that monthly payments are not too large in terms of net income.
Banks also carry a thorough analysis of the rest to live. As a reminder, this indicator refers to the necessary amount that must remain to a borrower, after deducting his expenses (rent, monthly credit, invoices), to eat, move or dress. In addition, if banks rely on these elements to determine whether a borrower will be able to repay his loan with confidence, it should be noted that the calculation of the repayment capacity is almost universal while that of the rest to live can depending on each bank and situation.