In the context of a repurchase of credit, the mortgage guarantee is not systematic. It is even possible to avoid this guarantee.
Credit redemption allows for the consolidation of several loans into one in order to benefit from a single, reduced monthly payment, better adapted to its budget, in return for an extension of the loan term and a higher total cost. The banking organization can also ask for a guarantee like the mortgage of a property to be protected in case of impossibility of refund. How to get around this obligation?
Operation of the mortgage-free buy-back
In the case of a repurchase of credit and to guarantee the repayment of the outstanding capital, the lender may require a mortgage or a deposit. The borrower who opts for the mortgage commits his property as collateral. Thus, in case of default of payment, the bank may seize the property and proceed to its sale for reimbursement.
To mortgage a property nevertheless presents some disadvantages. First of all, that this transaction has a cost, the costs corresponding to the registration in the register of mortgages and emoluments of the notary generally amounting to 2% of the amount of the credit. In addition, in the event of impossibility of repayment by the borrower, the bank reserves the right to seize the property placed in guarantee, whether it is his main residence, secondary or a rental property . Finally, in case of lifting of the mortgage, the owner must pay the costs generated by this operation. For a loan of 150,000 euros, these costs represent for example nearly 0.50%, or more than 750 euros.
Credit redemption: what are the alternatives to the mortgage?
The use of the surety makes it possible to avoid the inconveniences associated with the setting up of a mortgage guarantee. Unlike mortgage fees that are permanently lost, this guarantee is returned to the borrower at the end of the contract.
The surety bond can also be interesting. This is for the borrower to appeal to a relative against whom the lender can turn in the event of default. The surety must of course be solvent at the time of signing the loan agreement.
Termination of wages is another option. In practice, this means that the employer deducts the loan amount directly from the borrower’s salary in order to pay it to the bank. The lender is thus assured of being paid.
Simulate your mortgage buyback without mortgage guarantee
The online mortgage unsecured credit redemption simulation allows you to quickly obtain a monthly payment estimate. To have a first feasibility opinion, simply complete a quick form in less than 2 minutes.
This tool saves you time but can also save you up to 60% on your monthly payments. Indeed, in front of the range of banks and the offers proposed, it is sometimes difficult to make a choice. The simulator helps you to see more clearly and to identify the best offer of unsecured credit.