A financial operation that consists of re-launching a borrower, the redemption of credit follows certain rules, including a maximum duration. A credit institution that agrees to buy back all the loans, be it real estate loans or consumer loans, will set up a new monthly payment to help the borrower to gradually settle all his debts. The shorter the duration, the higher the monthly payment and the lower borrowing rate. But for many, the challenge of buying credit is to reduce its debt ratio and therefore to favor a spread of debts over time to minimize monthly payments… Until when?
12 years for the purchase of consumer loans
Criteria related to the personal circumstances of the borrower and the nature of the redemption of credits are taken into account in the calculation of the term of the new loan. Thus, if you are hosted or rented, the maximum duration of the purchase of your consumer credits is only 12 years. It may also vary depending on the age of the borrower at the end of the loan.
From 25 to 35 years old for the redemption of credit with surety or mortgage
As part of the implementation of a repurchase of credit with bond by a third party or by a specialized agency, the maximum duration is 25 years. The bond allows you to request a higher credit surrender. It guarantees the payment of the receivables in case of default of the borrower. If you take out a mortgage purchase with a mortgage guarantee, the maximum term is between 30 and 35 years. Here again, the profile of the borrower is taken into account to set a suitable duration.
What about the minimum duration?
The minimum term is 12 months for any loan consolidation. The purchase of short-term credit reassures banks as to the nature of the financial difficulties of the borrower.
At the same time, there is a maximum number of credits that you can combine: 20 loans with mortgage guarantees and 7 loans without a mortgage solution. You can choose which loans are in or out of the credit buy-back and retain the benefits of some of the credits you have helped, such as the zero-rate loan or the home loan.