You may not know it, but you can indeed buy a house with a buyout or a grouping of credits, this solution allows many French people to invest in stone or to afford a second residence. Here is a complete file on this particular financing.
Buying real estate when you are already repaying credits is not easy, the equation must be balanced to allow on the one hand the good repayment of current credits but also the assumption of responsibility in the budget of the new monthly payment that will come to accumulate.
Quite simply, many households do not have the capacity to absorb a new deadline as it stands, quite simply because of two elements:the debt ratio which must not exceed 33% (here is a tool to calculate your rate of indebtedness) and the rate of remainder to live, which fluctuates according to the banking establishments but which must respect a minimum share.
Many French owners plan to build a second home or buy an apartment or even a house in the coming months. The fashion is for investment in Portugal (we talk about it on Challenges), in Spain or in Greece for many seniors who wish to spend quiet days in retirement, they do not necessarily have the appropriate financing solutions. to realize their project, in particular with the classic mortgage, the purchase of mortgage offers however more concrete possibilities.
Rates are on a gentle rise at the start of the year, so rush for latecomers and seize rate opportunities. This is what many owners are currently doing, wishing to acquire a new property in addition to their main habitat. On the other hand, only households that can absorb a new monthly payment will succeed in obtaining their financing.
For others, the repurchase of mortgage is a serious option to take into account. It is possible to redeem current credits and include an amount dedicated to a new project such as the purchase of a house, an apartment. The credit institution proposes to take over the outstanding amounts, to smooth the remaining capital to be repaid over a longer period, which makes it possible to leave a larger share for a new amount and therefore a new monthly payment.
The presence of the applicant's property makes it possible to guarantee the purchase, which is one of the specificities of this financing, in other words the traditional lenders cannot engage in such operations, they simply take care of proposing a mortgage. , without taking over the existing one.
Like any banking operation, a feasibility study is necessary to ensure that the financing is in place. The borrower must therefore make a request specifying the amount of his current credits as well as the amount of his new project. The establishment will be responsible for studying the possibilities of loan buybacks and therefore present the offers with the rate, duration and total amount remaining due.
The first specificity of this operation lies in the notion of mortgage quota. In fact, to grant an amount dedicated to a real estate project, this amount must not exceed the value of the property offered as collateral, this is called the quota. Each lender has its own quotas, namely that some do not commit to a quota greater than 80%, others will align themselves with a quota of 100%.
Another important point, such an operation generates costs, namely administrative costs (and/or mandates), early repayment costs for repurchased credits (unless otherwise agreed) and mortgage guarantee costs for loan coverage. Insurance will be necessary, not necessarily mandatory but highly recommended.
