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.