The mortgage purchase is only for homeowners. Discover everything you need to know about this operation: definition, usefulness, disadvantages and simulation.
Mortgage is a financing solution secured by a mortgage. It concerns owners and first time buyers. What is the purchase of mortgage credit? In which cases should it be put in place? All explanations in this article.
Definition of mortgage repurchase
The purchase of mortgage credit is an operation that involves the repurchase by a credit institution of several loans and to guarantee the loan by a mortgage. This funding is for households who own property to present as security.
To set up such an operation, it is essential to carry out a preliminary study which consists first of all in assessing the financing needs, ie the amounts of the loans to be repurchased and that of the eventual project. The situation of the borrower must also be studied including income, expenses and real estate. The value of the property is particularly important since it will determine the mortgage quota and therefore the feasibility of the project. Once this information is collected, the study can be launched. An offer to buy mortgage credit is sent to the borrower who can then examine it in detail (APR, TAEA, mortgage fees, total cost of the repurchase of credit).
Why set up a mortgage repurchase?
The purchase of mortgage credit allows the borrower to access more attractive financial products offering him the opportunity to realize a new project. These products are often offered at preferential rates and the acceptance criteria are less restrictive. Indeed, the presence of a guarantee on funds paid reassures the lender. The mortgage is a guarantee recognized by the institutions and facilitates the implementation of a repurchase of credit.
Despite its advantages, the purchase of mortgage credit remains a complex operation. It involves going through a notary with additional fees and a longer processing time.
Realize a simulation of mortgage repurchase
You have several credits in repayment and want to know more before setting up a mortgage purchase? It may be wise to perform an online simulation. This tool will determine your debt ratio, the outstanding capital of your loans, the amount of notary fees and allow you to view your depreciation schedule. The use of the simulator is simple, fast and free. All you have to do is enter certain information concerning the current loans (duration, rate, amount of monthly payments). The first results allow you to refine your mortgage purchase project.
To obtain the best credit buy offer, do not hesitate to use the services of a specialist broker. With a wide network of partners, this professional will make proposals tailored to your profile. Today, many intermediaries are specialized in the purchase of mortgage credit.