The repurchase of loan or the renegotiation is a right framed by the code of consumption. But for it to be advantageous, you have to see if it’s the right time. The operation is only really interesting when you still have a relatively high amount of capital to repay.
It’s only worth it if you get a rate difference – between the new rate and the old one – of at least 0.7 points. And then, don’t forget to take into account the amount of the fees you will pay for this operation, the banks take administrative fees etc. It’s up to you to do your calculations, knowing that you obviously have to compare the proposals between the different banks.
franceinfo: Is it better to renegotiate or buy back your loan?
Fanny Guinochet: Renegotiating means staying in the same bank. It’s easier and often the costs are lower, but to be able to renegotiate and obtain a better rate, take good care of your arguments. Your financial situation has improved, you have obtained an inheritance, a bonus, or signed a permanent contract. In fact, your banker will only make you a good offer if he doesn’t want you to leave.
The repurchase of credit by another bank, on the other hand, is generally what allows you to compete and therefore often obtain more favorable conditions. But there is a good chance that the new bank will ask you in return to recover your current accounts. Which means paperwork, even if it has been simplified a lot, your new financial institution will promise to manage your new bank domiciliation with the administrations, your employers, creditors, etc.
And to earn money, you can also renegotiate your borrower insurance?
Yes now, we can do it at any time, it’s a real change. You no longer have to wait for the anniversary date of your contract to knock on the door of a new insurer.
And according to estimates, it can save you between 5,000 and 15,000 euros on average over the duration of the loan. And as the law has just been put in place, banks and insurance companies are in the starting blocks to fully play the game of competition with interesting proposals. So don’t hesitate…