Despite a slight revaluation of bank interest rates in recent weeks, rates remain historically low. We seem to have reached a low level. This is the time to revise its initial Real Estate Gestational Conditions. Still need to have a margin of negotiation with his banker.
For this, a balanced budget is essential, it is the purpose of the redemption of credits, a procedure not to be missed to take advantage of this historic decline in interest rates.
Real Estate Loan Renegotiation: The End of Interest Rates Floors?
Given weak European economic growth, it is likely that this situation persists for the coming months. If many French have already asked their bank for the renegotiation of their mortgage, there are laggards. In many cases, those who have not applied for a loan review have a high debt ratio and difficulties in meeting their repayments.
The purchase of consumer credit is the ideal answer. Thanks to the restructuring of consumption credits in progress, borrowers find a good debt, and can finally renegotiate their mortgage terms with their banker.
Clean up your budget to avoid unpaid bills
When the financial burdens of a household (consumer loans, and monthly mortgage payments for homeowners) exceed 40% of household income, budget management becomes very complex. In addition to monthly repayments, the household must pay the rent (for tenants) and tax levies (income tax, housing tax and land tax for homeowners).
In the end, this lack of attitude can generate late payments and fees and agios that come from peers. Eventually, this situation may give rise to problems of over-indebtedness and therefore to banking restrictions. It is also an obstacle to a possible renegotiation of real estate loans in progress.
Consolidation of loans is a sustainable solution to reduce the financial pressure on the budget.
Correct debt to negotiate with his banker
It is downstream from a purchase of credits that the requests made by the borrower to his bank are seriously taken into account. In fact, if the debtors have a balanced financial situation again, the bank will have every interest in making a competitive renegotiation proposal to avoid losing its client.
Indeed, home loans can be bought at any time by other external banking institutions. Prepayment penalties are applied by the original lending institution.
Nevertheless, in general this operation does not imply any immediate financial investment on the part of the borrower. Thus, these costs are included in the repurchase of the mortgage.