The pension marks, for an elderly person, the end of the payment of the entire salary. But it is possible that some people still have a home loan. And the least we can say is that it is a risk for the debtors. Hence the need to opt for a renegotiation. But how to do it? This is what we will see immediately. Don’t worry, the Objeko editorial team will tell you everything. You are ready ?
Clearly distinguish between renegotiation and credit repayment
Above all, do not confuse renegotiation and repurchase of credit. In fact, it’s not the same thing at all. So, you should know that renegotiation consists of asking your current bank to re-evaluate the interest rate applied to the downside. And the least we can say is that it’s not necessarily easy to get it. To put the odds on your side, it is advisable to turn to several establishments. To receive proposals that will serve as the basis for this negotiation.
As for the repurchase of credit, it is a little different. In fact, it consists in buying back one or more mortgages and / or consumer loans from another bank. Therefore, with this credit consolidation, the borrower will only have one monthly payment to pay. instead of many. But for this operation, you should know that different fees are applied. Early repayment indemnity, insurance and guarantee costs, administrative costs, any brokerage fees.
Why renegotiate the loan after retirement?
The question we now ask ourselves is: why is it good to renegotiate the contract after retirement? Well, first of all, you should know that the transition to retirement leads to an inevitable drop in income. About 30%, however. And obviously this can heavily affect the budget of the over 60s who already have a loan in repayment. Therefore, to maintain purchasing power, renegotiation can be a good idea.
When interest rates fall, this solution allows for more favorable debt conditions. And hence, the borrowers will be able to make big savings. When you know how much life costs right now, it’s not negligible. OR ? To renegotiate the mortgage after 60 years, it is advisable to prepare the application well in advance. Don’t forget your documents too. We are thinking in particular of identity documents, pay slips, bank statements or tax notes.
When should you renegotiate your mortgage?
Credit renegotiation can be done at any time. However, before resorting to it, the profitability of this operation should be ensured. In fact, if the rate is too high, don’t even think about it. In general, it is interesting to renegotiate your mortgage when around 70,000 euros are missing. Now you know everything. It is up to you.