Almost everyone has heard about online payday loans. Thanks to modern solutions that loan companies use, their offers are getting wider and wider. However, not everyone is able to get a loan online, especially for the elderly.
The low rates and the new competition in the borrower insurance sector allow the French who repay their mortgage to save several thousand dollars.
Renegotiate your mortgage
Owing to ever lower interest rates, homeowners can renegotiate their mortgage. It is also easier to compete to take advantage of cheaper borrower insurance and extended guarantees. Explanations.
Rates remain low and do not seem to want to take off. Consequence: another phenomenon is gaining importance, namely renegotiations of mortgage loans. Moreover, since February 2018, the share of renegotiations in mortgage credit files has passed the 20% mark, according to data from the Good Lenders Bank.
However, you should know that nothing obliges the bank to grant you a drop in interest rates. The sole motivation of the lender is not to lose customers on the other calling products it offers. The mortgage is an argument allowing banks to retain their customers and sell them insurance products or other more lucrative financial investments.
If you offer your bank a more competitive proposition from a competing institution, chances are it will make a move. Otherwise, it is always possible to set up a loan buy-back which consists of consolidating one or more existing loans into a single loan.
Change borrower insurance
Although legally not compulsory, home loan insurance is required by almost all banks for the granting of credit. It allows the lender to be protected in the event of impossibility of repayment on the part of the subscriber following a death, illness or even a loss of job.
Loan insurance represents a significant part of the total cost of credit, around 20%. The Bourquin amendment adopted in January 2018 allows borrowers to make significant savings. Indeed, the latter now have the possibility of changing insurance on each anniversary date of the contract.
In order not to be refused by the bank, the borrower must ensure that the new contract chosen includes guarantees at least equivalent to the previous one. The lender then has 10 days to notify his refusal, otherwise the contract will be considered accepted.
Whether it’s a mortgage renegotiation or a change in borrower insurance, it’s important to take advantage of the competition to save a lot.