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How to renegotiate your mortgage?

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For several months, mortgage rates are down. A few years ago, a mortgage over 20 years proposed a rate approaching 5%. Today, the same product is available at a rate of up to 1.6%. An evolution that justifies the increase in renegotiation requests from

requests for renegotiation by borrowers who wish to be able to enjoy these much more attractive rates. “The low rate effect continues, requests for renegotiation of credits flock again,” said Mael Bernier recently, director of communication of Meilleurtaux Le Parisien newspaper.

3 basic conditions before launching

Above all, three mandatory criteria must be met in order to access a renegotiation of a mortgage. First, be in the first half of the credit. That is, people with 20-year credit should be within the first 10 years of repayment. Next, it must be verified that there is at least 0.70 to 1 point difference between the credit rate contracted and the rate currently charged.

For example, current rates are around 1.60%, so the current credit will need a minimum rate of 2.60% in order for renegotiation to be possible. Finally, the outstanding amount must be at least 70,000 euros. If these 3 conditions are met, then it is interesting to go further in the process.

Convince your bank to renegotiate your home loan

 Convince your bank to renegotiate your home loan

Since 2008, every individual is free to ask for the renegotiation of his mortgage with his bank. However, no institution is obliged to access this type of request, which is why preparing your application is essential for the smooth running of this type of operation. The first reflex will be to contact his bank to express his wish. The institution can either refuse to propose a solution or propose a new rate.

This proposal will only be valid for one time. A period during which it may be interesting to inquire with other banks to find out what is proposed and thus compete to convince the lending institution to start making a more interesting offer. Then free to the particular to accept the offer which is made to him or not.

Pay attention to costs

money costs

When the renegotiation request ends with the lending organization, two scenarios can be put in place. The amount of the monthly payment may remain similar to that practiced with the previous rate, it is then the repayment period of the credit will be reduced. The amount of the monthly payments can also be reduced in order to regain purchasing power, it is then the duration that remains the same.

However, this type of operation generates action and changes in the terms of credit, and therefore costs. The latter relate to early repayment fees, the introduction of new guarantee fees, application fees, brokerage fees, etc. These additional costs will be, for example, greater if a mortgage is used as a guarantee.

To limit spending and ensure that the game is worth the candle despite the gap between the previous rate and the new practice, requesting a commercial gesture to the bank to reduce the bill can be a good idea. In fact, the whole operation is based on what the banking establishment will be able to propose in order to achieve a win-win compromise, when we talk about renegotiation, so it’s not just about the rate, but all the agreement that will govern the terms of the new credit that will be put in place.

And if the bank refuses?

When the bank refuses to offer a more attractive rate or is not sufficiently inclined to propose a suitable request to both parties, it is always possible to go to another institution to make a credit redemption.

I simulate a credit redemption! to be reminded

The repurchase of credit makes it possible, on presentation of a file of request, to regroup all the outstanding loans in order to benefit from more interesting rates. In this way, the duration and the amount of the monthly payments are recalculated according to the applicant’s financial possibilities. Only one monthly payment is taken each month, because all outstanding debts are now grouped within the same loan. What’s more, the purchase of credit can also be an opportunity to apply for additional funding to realize a new project.

Simply put, buying a loan is like renegotiating one’s mortgage at a better rate, but also including other outstanding loans (such as a consumer credit for example) to get a simplified refund. and more advantageous.

To make a loan redemption, a request for a file study must be sent to an organization that performs this type of operation. It should mention current loans and other debts, and provide evidence of its financial situation. The organization then makes a proposal that needs to be studied and then accepted or rejected. It is often interesting to make several redemption requests to compare different proposals. Once one of them accepted, it is the professional in repurchase of credit which will take care of all the steps.

The opportunity to review his insurance-borrower

 The opportunity to review his insurance-borrower

When you start negotiating, take a look at your creditor insurance to see if you can get a better deal. Indeed, it is possible to renegotiate the borrower’s insurance each year on its anniversary date and also for each new credit or repurchase of credit. Thus, a renegotiation of mortgage loans is also an opportunity to renegotiate its insurance and realize between 30% and 50% savings on the tariff of the latter. Be careful however, the new insurance contract must offer the same guarantees as the old one and its price will be influenced by the age and state of health of the applicant.

Back to school, the perfect time to start!

 Back to school, the perfect time to start!

If you are planning to start renegotiating your mortgage, back is the perfect time! “We are in the summer period and the banks have few people in the back office, they deal first and foremost with the new files, those that lead to a purchase,” explained recently Mael Bernier in Paris. Moreover, the end of the year is approaching and if your bank has not achieved its objectives for the year it will prefer to negotiate rather than see you leave. “On average, in the first half of 2016, the files we renegotiated saved € 29,500,” explained Maël Bernier. Knowing that rates have dropped even more since then, there is no reason not to try one’s luck!

Revisable rate and variable rate

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The variable rate loan is a credit whose interest rate may fluctuate depending on the conditions of the financial markets or the terms of a loan or issue agreement. These variations may change up or down. Generally, the rate revision is done once a year. To redefine the rate of their variable rate loans, the lending institutions are based on the Euribor (Euro Interbank Offered Rate), a benchmark index for the euro area. Thanks to this index, the rate is recalculated.

At this new figure, banks will add a margin of 1% to 3%. This margin is calculated according to the situation of the borrower. The adjustable rate loan is therefore directly dependent on the evolution of the money market and these subscribers.

Advantages and disadvantages of a floating rate loan

Advantages and disadvantages of a floating rate loan

The main advantage of a variable rate loan is precisely the interest rate. It will generally be lower than fixed rate loans. Since it is revisable each year, banks do not need to protect themselves from a possible rate hike. In addition, if the Euribor benchmark index announces a decline, the rate will also fall.

It is also possible to make an early repayment, an operation that can be particularly interesting when the rates of the current year are low. As for the margins allowed by banks, the more the borrower will provide collateral the lower the margins taken.

However, subject to market fluctuations, variable rate credit is more risky. The borrower must be able to face higher monthly payments if rates rise. This type of credit is therefore rather advisable for short periods of time and for the purchase of a second home rather than a principal residence. To mitigate this risk, it is still possible to easily convert its adjustable rate loan into a fixed rate loan, this mention must be established in the contract of departure.

Variable Rate Loan Purchase to Settle

Variable Rate Loan Purchase to Settle

Floating rate credit involves significant risks. It is therefore quite possible to put an end to the variable rate to start again on a fixed rate by renegotiating with his bank in function or by carrying out a repurchase of mortgage with a specialized broker. If the borrower has several immo or conso credit, he can ask to renegotiate his variable rate loans in a single loan at a fixed rate with a single fixed monthly payment and a repayment period consistent with his budget.

Prepayment fees may be included in this type of loan, depending on the terms and conditions set out at the time of the subscription of the credit agreement.

What is a capped loan?

What is a capped loan?

For added security, there is a capped version of the variable rate loan. This is a ceiling defined at the signing of the contract that will not exceed a certain percentage threshold and therefore a certain amount of monthly payment. A starting rate likely to evolve with limits is thus defined beforehand, which allows to have a certain security in the variation of the rates, but also to deprive oneself of benefiting from possible sharp declines.

Credit pool, ready work to build your pool

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Building a swimming pool is a dream but also an investment that can be important. That’s why, before starting, it is necessary to prepare well its project but also to find. Thanks to the pool credit, a consumer credit, you can be building your pool up to 75 000 €. And to find the best rate on the market, you can count on the comparator Snark.fr!

In the same theme

  • Estimate your consumption credit
  • Consumer credit comparison
  • Estimate your consumption credit
  1. A swimming pool project step by step
  2. An accurate quote for a suitable pool loan
  3. Choose a Pool Credit with the Snark.co.uk Comparator

A swimming pool project step by step

A swimming pool project step by step

Building a swimming pool is a big project that is getting ready. At first, you have to choose the pool and its location. Then you have to think about the different options such as the technical room, the pool enclosure or the lighting, and all the facilities that will adorn and secure the pool area.

Then you have to find the right professional. To build your pool, you can use a pool, a professional who works for a specialized sign or just a craftsman.

Finally, to estimate the exact amount of the work , it is necessary to make at least 3 requests of estimate and to compare the services. Attention: requests must be identical!

An accurate quote for a suitable pool loan

loan

To compare quotes and have a clear idea of ​​the amount of work related to the construction of your future pool, it is imperative to check different points.
If you have an incomplete quote and therefore unforeseen expenses, you may delay your project or have to draw on your savings.

Your estimate must include a list of all the work to be done, which may include earthworks, pipelines, the construction of a technical room, a terrace or a pool enclosure. All materials and their prices must also be indicated as well as the restoration of the ground, the cleaning of the building site and the commissioning of the swimming pool. If you have requested particular options as a guarantee, these must be indicated on the quote.

To enable you to obtain a pool loan by justifying the amount of the project, the estimate must also include the name of the company, your contact details, the site of the construction site and the period of validity of the estimate. Then all you have to do is find an advantageous pool credit!

Choose a Pool Credit with the Comparator

Credit

For your pool loan, you can call a bank, a credit organization or a financial institution. It is not uncommon for specialized swimming pool retailers to offer.

Before you commit, think about comparing. Thanks to the comparator Snark.fr, you will quickly and easily be aware of the rates in force. Thus, you can in a few clicks choose the financial institution that offers the best offer!

It should be noted that your borrowing capacity will be studied. This is 33%. A credit commits you. Also, make sure you can deal with of your pool.

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