Loan Consolidation: A Growing Market
Little known a few years ago, the redemption of credits knows a strong progression. The elements are not lacking to encourage the French to restructure their debts: increase in household debt, increase in property prices, increase the repayment charge of variable rate loans, low purchasing power, … . Credit buy-back now concerns all households, whereas initially it was reserved for a smaller clientele, facing financial difficulties.
A market in full swing!
The volume of home loans has decreased while that of loan consolidation has increased. In France, this market which represented 20 billion euros of production in 2011 should remain on a positive dynamic and evolve towards more professionalism thanks to the legislative modifications (law Lagarde).
The repurchase of debts does not concern only persons in excessive indebtedness
A loan buyout is a new start for borrowers with an unbalanced budget and a great tool for those who need to unlock funds or new financing without endangering their finances.
Loan repurchase is an operation whereby a financial institution buys all the debts of an individual and groups them together. As a result, the borrower will only have one reduced monthly payment of up to 60%, thus reducing the burden but lengthening the repayment period.
Like any banking operation
This loan restructuring is subject to file acceptance criteria such as the debt ratio, the type of employment contract and even the personal situation of the clients. It is therefore important to call on a body that is competent in this activity.
The choice of the broker is decisive when setting up a purchase of credits, it is he who will defend the file of his client and who will put all the chances on his side to get a tailor-made formula.
Faced with this important demand, an intermediary in banking and specialized in real estate credit for more than 13 years, accompanies borrowers in their loan restructuring project.