Many borrowers use credit redemption to reduce their monthly payments and better manage their budget. The time to set up this operation depends on several factors.
The time frame for setting up a credit buy-back and unlocking the funds is spread over several weeks. Why such a long time? Because the constitution of the file, the study of the request and its validation by the lender, the transmission of the offer and the release of the funds constitute essential stages. Explanations.
What is the deadline for obtaining a credit surrender?
Obtaining a credit redemption requires following several essential steps. To save time, the first thing to do is to build a solid and complete file. If not, the bank will claim the missing parts and delays will accumulate. After having analyzed your file, the establishment will propose you an offer of repurchase of adapted credit. You have 10 days to accept it or not. The loan offer is effective only when it is signed. After the signature, you have to wait the time of the withdrawal period which is fixed at 14 days in accordance with the Lagarde law or 10 days for a repurchase of mortgage credit. The notary or the bank then releases the funds.
Credit redemption: what is the release of funds?
The unblocking of the funds corresponds to the last stage of the operation of repurchase of credit. This sum is dedicated to the repayment of the debts included in the repurchase of credit (principal remaining due and prepayment indemnities). It is important to know that in the context of a real estate loan with mortgage guarantee, the release of the funds is done by a notary. In other cases, it is the new bank that takes care of it by reimbursing the financial institutions concerned.
The deadline for releasing funds from a credit surrender depends on the bank that originated the transaction and the applicant. For a real estate mortgage buyback, it usually takes between 2 and 3 days. In the case of a repurchase of credit without mortgage or a repurchase of consumer credit, the release of the funds comes immediately after the reception of the loan contract signed by the borrower.
Tips before setting up a credit redemption
Before starting a procedure to buy credit and not wasting time, it is essential to verify that your request is not in contradiction with the criteria imposed by the banks. Indeed, your borrower profile must be stable and you must reside on the French territory.
The online credit redemption simulation allows you to quickly determine if this project is feasible in view of your situation. To facilitate your efforts, you can also call on a broker who will direct you to the best offers and provide you with personalized advice.