The repurchase of credits consists in regrouping in whole or in part your old loans in progress to replace them by a more advantageous single credit. Very often, the objective is to be able to reduce your monthly payments in order to gain purchasing power.
This decrease in monthly repayments will be all the more important as the duration of the loan will be long. The choice of a repayment period will therefore be based on the type of loans grouped, but also on the situation and the objectives of the borrower, by also evaluating the overall cost of the single credit. What are the maximum borrowing periods for a loan buy-back?
From 12 years to 15 years for a purchase of consumer loans.
The maximum duration of a loan buy-back is different depending on whether you buy back consumer loans or buy back loans involving one or more mortgage loans and guaranteed by a mortgage (mortgage buy-back).
Similarly, if you are tenants or owners, the maximum duration of your purchase of consumer loans may vary.
It can thus extend up to 12 years for a tenant borrower from 15 years for an owner borrower.
In a purchase of consumer credits, you can also group together any personal loan, revolving credit, assigned credit such as a car loan or a work loan, but also receivables such as bank overdrafts, tax debts, debts due to bailiffs or family debts.
The age of the borrower will also influence the maximum duration of the loan repurchase. Thus, the maximum age is 75 years for a tenant borrower and 85 years for a borrower owner in the context of a purchase of consumer loans.
From 25 to 35 years old for a credit buy-back with surety or mortgage
The repurchase of credits can be covered by a suretyship or a mortgage which guarantee its repayment, in the event of default of the borrower.
When the guarantee is provided by a third party or a specialized body, the maximum duration of the new single loan may extend up to 25 years.
When the repurchase of credits is guaranteed by the real estate of the borrower, one speaks about repurchase of mortgage credit. This mortgage also modifies the conditions of maximum duration which can reach this time between 30 and 35 years according to the profile of the subscriber.
In the context of a mortgage loan repurchase, it will be possible to combine the same credits as in the context of the repurchase of consumer loans, by including one or more mortgage loans. The conditions for the repurchase of mortgage credit are applied as soon as the real estate share represents more than 60% of the total financing of the repurchase of loans.