Repurchase of credit and new real estate project

In a context in which private demand is destabilized, with the deterioration of purchasing power, the increase in house prices and the war in Ukraine, since January also the lending rates of real estate have been increasing, against the background of the new recommendations of the High Council for Financial Stability (HCSF) to tighten lending conditions.

As a result, in March alone, the number of bank loans granted decreased by 17.8% year-over-year. Who had not dared to buy during the health crisis and postponed the purchase lost the boat? Nothing is lost! The conditions for borrowing continue to be very advantageous and the purchase of real estate remains possible despite the increase in real estate rates. In addition, to regain its debt capacity, there are solutions such as the purchase of mortgages.

Long loans: a solution for the purchase of real estate

Only the richest households can borrow for short periods and their share is increasing among home buyers. Borrowers with the lowest personal contribution fall back on longer loans, for which the rise in real estate rates is less strong. Here we find home buyers (for the first time) and investors (for the first time).

According to the Real Estate Credit Observatory, in the 1st quarter 63.3% of bank loans to finance the main residence were granted with a duration of more than 20 years and less than a quarter of borrowers obtained a rate of less than 1 %.

In mid-April, the average rate reached 1.22%, up 16 points compared to December 2021.

Good news, however: all borrowers currently benefit from loans at rates below inflation. The rise in real estate rates remains moderate.

There are other solutions such as increasing your intake.

Sometimes, you also need to review your purchase criteria, lowering your ambitions or simply looking for a property in another district.

The repurchase of the mortgage to reduce the cost of credit

Another solution to reduce the cost of credit is the purchase of the mortgage. This involves taking out a new home loan from a new bank (in order to get a more attractive interest rate), and collecting more home loans (or less) with a single loan and monthly payment. Their amounts may vary. Furthermore, it is not necessary that they have been subscribed at the same time, neither at the same rates, nor in the same bank.

Buying a home loan can end over-indebtedness (or avoid it) and reduce the amount of a loan. It is also a way to reduce the number of repayments per month. Purchasing power has therefore improved! This also allows you to refinance your mortgage. You can thus save several tens of thousands of euros sometimes on the total cost of your loan.

Mortgage repurchase: how to find a comparator?

Mortgage brokers who specialize in loan repurchases offer variable mortgage rates. To order and choose the one that best suits your situation and needs, the comparison site Lesfurets has developed a tool to compare offers to buy back mortgages online.

Even when at first you prefer to go to your bank, know the average loan repayment rates, and be able to play the competition card, it allows you to arrive better armed in front of your banker. Compare your home loan purchase with the Lesfurets comparator is free, fast and without obligation.