To get out of the spiral of indebtedness or simply because of the need to finance new projects, consumers are increasingly using the current loan buyback solution. This financial operation, which consists of gathering all or a portion of the credits in one, makes it possible to reduce the monthly payments and thus make the budget more flexible. A question is regularly asked to finance experts: is it possible to renegotiate its credits rate 0? We answer your question in this release.
The loan to 0: what is it?
First of all, you should set the Zero Rate Loan% (more commonly known as the PTZ ) in order to understand its interest. In order to allow French households to have an access to the property, the French government has set up a free credit (without interest) which is granted under certain conditions. In fact, it must be remembered that the 0% loan can be requested by natural persons who are new owners of a principal residence. The purchase can be done in the new as in the old with works. The loan amount varies depending on:
the geographical area,
of the composition of the hearth.
In short, the 0% loan is already an interesting financial product that should not be renegotiated.
Why is the renegotiation of a 0 rate irrelevant?
Accessing property is a difficult act for low- income households. It is mainly for this reason that the zero interest loan has been imagined. This particular loan therefore has the same basic objective as buying back credits: optimize the consumer budget with low repayment payments. In fact, when a household wants to use a loan buyback, it looks for a low rate. A problem can therefore arise: how to find a loan with a rate of 0%? This research is obviously impossible. So how do you get the benefits of buying back credits when you have a 0% loan? Here is a new question that deserves an answer.
The redemption of credits and the 0% interest rate loan
If the PTZ can not be repossessed by the credit institutions, one is entitled to ask whether it is possible to transfer it to the institution that buys back its credits. This question must still be answered in the negative. The PTZ remains in the lending bank until the end of the term of the contract. It is possible, however, to renegotiate its classic home loan provided that it has not mortgaged the property acquired. In this case, the PTZ will remain at the initial bank. The consolidation operation will focus on real estate loans and consumer loans. Beware, however, the monthly payment of the PTZ is taken into account in the calculation of refinancing credits. If the debt ratio is too high, the credit institution (or bank) may reject your request for consolidation.
While you are doing your bank administration on a rainy Sunday morning, you see that a lot of money disappears from your current account every month. You take the time to find out where that goes. Water & electricity, internet, telephone and cable television. And of course the home loan, but you also have a nice house to live in. There are also a number of personal loans for a new washing machine, television and a new bedroom. That is why you are red almost every month, because life is expensive and the month is long.
You cannot do much about your fixed costs.
But for loans, there may be opportunities to reduce costs. Now that the interest rate is at a historic low you can use it. The home loan that you took out years ago (at a higher interest rate) could be far too expensive in these current times. You can refinance an expensive loan by changing financial institutions. Note that notary fees may be associated with this (depending on the loan amount) and a reinvestment fee – usually 3x the monthly rate. So if you only have one year left to pay off your home loan, this is not a good idea. However, a home loan with a remaining term of, for example, 10 years can save you a large sum of money.
The personal loan is slightly more complicated.
The loan is usually smaller and is repaid over a shorter term. First of all you have to check whether a fine is charged for early payment. Nowadays that often no longer happens, but check it out. It is more practical and cheaper to combine various personal loans (and perhaps other loans) under one loan. Because the total count is higher than for the individual loans, the annual percentage rate (APR) will be lower. And if you need a little more air, you can adjust the duration. Your monthly payments will then be lower. To know if rescheduling a loan is a good idea for you, it is smart to request various quotes. One lender is not the other,
Every lender nowadays has a simulator tool on the website and with that you can see within a few seconds what you are going to pay off each month. By placing the quotes next to each other, you get an overview of the various options and who offers the cheapest rates. View at least 5 suppliers to get an impression of the cheapest deals. We have already compared the cheapest providers to save you time and effort. You can request a free quote by clicking on the provider and using the loan simulator. You see, it is now easier than ever for whom taking out a loan is the cheapest.
An unexpected vacation that pops up out of the blue, your freezer that gives it up, new furniture for your home … there are a thousand and one reasons why you suddenly need money. There are different types of loans that can help you out, with advantages and disadvantages. Borrowing always costs money but borrowing money directly is now easier than ever. You can take out a personal loan, mini loan or revolving credit. The latter is technically not a loan (because you do not get any money deposited into your account) but closely related.
A revolving credit is a flexible loan and is usually applied for if you do not know how much or when you need the money. You agree on a limit and you can withdraw this amount freely, whenever you want. There is therefore no duration attached to it. Another advantage is that you will only repay a monthly percentage once you have withdrawn money. You can also withdraw money again and again. The interest depends on the limit (and is lower than a personal loan) and is variable – so it can also turn out unfavorably. The borrowing costs are also not fixed and you need discipline to always pay off the loan.
Another form of direct money borrowing is the personal loan; it is usually requested for a purchase that you want to make at that time. The amount is therefore deposited into your account in one go and you pay a fixed amount each month. The loan is linked to a term. The interest is fixed (and is often somewhat higher than for a revolving credit), but you will not be faced with any unpleasant surprises. You cannot withdraw if you have paid off, and if you repay early, you can get a fine. For both the personal loan and the revolving credit, it is checked whether you are on the ‘black list’ of the CKP (Central for Credits to Individuals).
For small loans you can request a mini loan; usually an amount of less than 1000 USD. You usually have it in your account within 24 hours (or sometimes after 10 minutes), so that’s nice and fast. It is not checked whether you have a CKP registration and the loan usually needs to be repaid quickly. With a mini loan the interest is higher than for the 2 previous loans, but you also pay faster.
Which loan is best depends on what you need it for. For direct money you can view the websites of many lenders. Pay attention to the interest and the costs that you have to pay. Together they are indicated under the APR, so the lower the better. Also don’t forget to read the conditions. On the websites you can request free quotes via the loan simulator, see what your (monthly) payments will be and compare them. And you are smart enough to then choose the cheapest provider and keep as much money as possible in your portfolio.
Receiving a loan as a single person depends on certain factors. For example, it is quite a difference whether you want to buy a new washing machine or an entire apartment. A loan for a washing machine is cleared quickly; not many questions are asked to get that done. A home is another story, but certainly possible, especially if you are a servant or can prove that you have been able to support yourself as a self-employed person in your main occupation for a few years. And of course it becomes even easier if you expect a windfall in the future or you already have an amount on your savings account.
There are more than 1.5 million people in Belgium who are single.
Did you know that single people apply for more than 30% of all home loans? That is clear proof that it is possible. But the road is a bit harder to walk than for a couple. Banks are wary because they take more risk. The amount to be borrowed is also somewhat lower: a maximum of 30% of the net income (this is 40% for a couple, and more if both salaries are included). If you also have the care of your children, cheap borrowing is crucial.
Yet there are countless lenders who are happy to work with you. There are quite a few differences between all those providers when it comes to monthly payments. You can find the cheapest loan by comparing the providers, because you prefer to keep as much money as possible in your own pocket. The differences in payment are mainly due to the annual percentage rate (APR). That is the annual interest and the borrowing costs that you pay on top of your loan each year. The duration is also important. A long term means lower monthly costs, while with a short term you have to pay more monthly.
Free quote for a loan
For cheap borrowing you have to compare the providers and enter data such as duration and age. Then you can quickly see who has the best APR – the lower the better. Please read the conditions carefully to know whether the percentage is for an entry level campaign and perhaps a little higher. By clicking on the provider, you go to the website of lenders and you can request a free quote for a loan. You do this via the so-called loan simulator. In this way you can find out in no time who offers you the cheapest loan and what you will pay per month. Do this with different amounts to find your limit and do not borrow more than necessary.
Never go to just 1 bank for advice. Talk to different benches and play them against each other. They are always willing to negotiate. So cheap borrowing is certainly possible, but you have to sit down for it. We have already put the cheapest in a table for you. This way you can easily compare and see what your options are with the simulator. And they are probably better than you thought. Try it and find out for yourself.
Do you have trouble making ends meet? Do you think that the redemption of credits can be the solution to get you out of this situation? The redemption of credits being framed by the French legislation, it is possible that your file of renegotiation is rejected. What to face a rejection? Are there other solutions or remedies? We answer your questions within this post!
Understand the refusal of the body
Before falling into anger and total depression, you must understand the reasons for rejecting your file. This understanding will allow you to reconstruct a new and stronger demand. In fact, you can get closer to the body that made the refusal to determine the causes.
Re-apply by asking the right questions Ask yourself the right questions and do the right calculations! To help you better understand, we’ve put together a short list.
What is my over -indebtedness rate? The ratio is the ratio of resources to household debt. If the rate is higher than 40%, there is a good chance your application will be rejected. By reducing your expenses ( lower food and clothing shopping, lower insurance contributions… ), borrowing from a family member, you can narrowly pass.
Can I mortgage a property? The mortgage is a payment insurance for the organization. A solution not to be neglected to solidify a file of request for redemption of credits.
Can I offer a guarantor to the lender? A person hired on a permanent contract can vouch for you. This guarantee is a real asset for the financial institution.
Am I stuck in the Francia bank? Some organizations do not accept people who are stuck in the Francia bank while others offer the possibility to households stuck to get by when they are filed with an over-indebtedness rate of less than 40%.
Read the policy of the financial institution. Not all financial institutions apply the same policy. You must read the terms of acceptance before applying. Some organizations are interested in contentious cases, it’s the perfect time to trust them.
Talk to your financial advisor who holds your checking account. If you have been a loyal customer for years, you can also negotiate with your banker. Sometimes it’s the only organization that trusts you.
The solution of the extreme
You have to contact several credit organizations. A refusal does not mean that other organizations will reject your records. The weapon of courage is your main ally. In cases of extreme urgency, it will be necessary to file an over -indebtedness file with the Francia bank.