You are a homeowner and already have an outstanding mortgage. And now you need to carry out work to install a new heating system or even expand your house with a veranda for example.
The question of financing the work then arises, because adding a monthly loan payment to the one that already exists can quickly widen your budget. However, a solution exists to finance your work without increasing your debt ratio: the repurchase of work credit.
Why opt for the repurchase of work credit?
In order to carry out work in their home, owners often have recourse to bank loans. For work for an amount less than 75,000 euros, they must apply for a consumer loan allocated to the work. However, when a work loan is added to the existing mortgage loan, the monthly payments of two credits over several years can be difficult to assume financially.
Of course, it is possible to play competition between credit institutions to find the best work loan and limit costs, but the fact remains that the debt ratio of borrowers can quickly be impacted. As a result, they risk not only facing a refusal of their funding, but in addition to having insufficient left to live to maintain their usual lifestyle.
By opting for the repurchase of credit works, or more exactly the consolidation of credit, the borrower can finance his works by keeping a single and unique monthly payment, the amount of which is identical to his current loans. Explanations …
What does the repurchase of work credit consist of?
The repurchase of credit works is quite simply a consolidation of loans. It is therefore used, as its name suggests, to group together all of its current credits in a single establishment. It is also possible to add an additional one, in this case the works credit.
It is generally the credit repurchase organizations, subsidiaries of large banking groups, which carry out this type of operation. Concretely, the new financial institution balances the old loans of the borrower (real estate, consumption) and opens a new loan taking over all the outstanding amounts.
The goal of the financial package is to reimburse only one monthly payment, generally reduced, over a longer repayment period. This allows the household to breathe financially and continue to live in the best conditions, while preserving its financial balance.
What are the advantages of a work loan buyback?
The repurchase of work credit has several advantages for all households wishing to improve their comfort of life:
- Reduced monthly payments: the repurchase of credit can lower the monthly payments of the borrower by up to 60%, this solution causes a financial additional cost
- Preserved monthly payments: the repurchase of credit makes it possible to add a work loan, without increasing the borrower’s usual monthly payments, the rest to live is kept and the additional cost is low, or even non-existent
- A single loan: the consolidation of credit works, it is a single credit rate, a single loan term, a single fixed monthly payment, which represents real flexibility in budget management
The repurchase of credit represents a breath of fresh air for indebted households, but also a real solution for wealthier households, which are sometimes winners by setting up a consolidation of loans.
How to buy back work credit?
The works credit, unless it is greater than an amount of 75,000 euros, is not a mortgage. Consequently, and even if it can be granted at an attractive rate, it is impossible to obtain it through the renegotiation of credit with its banking establishment.
The borrower therefore has only two solutions to finance the work he needs: go to a physical banking establishment and add a charge to those already in place, or contact a broker specializing in credit redemption to put in place. sets up a loan consolidation with a specialized subsidiary.
It is then the credit redemption establishment that will accept, or refuse, the borrower’s file. In order for the file to be accepted, the client’s solvency will be closely examined. A real estate guarantee, most often in the form of a mortgage, will be taken for work loans of a substantial amount.
How to make a simulation for the repurchase of credit works?
In order to know if the repurchase of credit works is relevant for the borrower, and to check the feasibility of his project, using an online simulator provides a response adapted to the customer’s request.
Even if the results are only indicative, they make it possible to quickly realize the new monthly payment from which the borrower would benefit, while estimating the total cost of the credit consolidation.
Finally, the simulation of credit buyback works allows you to get in touch with the best financing brokers, experts in credit buyback. This simulation is of course free of charge and without obligation. It is useful both for estimating a project and for making its work a reality!