The interest rate offered by a bank or lender is determined by the profile of the borrower. Thus, each financing request is studied individually to allow the lender to determine the borrower profile as well as the inherent credit repurchase product. In practice, the more the borrower profile is degraded, the higher the interest rate and the reverse is true. A borrower profile that displays good management of its bank accounts is likely to have a better interest rate for its loan repurchase. In fact, the bank or the banking institution provisions the risk in part of the interest rate. The borrower profile is defined according to different financial ratios in the file: the debt ratio before the buyout operation, the existence of financial incidents or not, the rest to be lived by person and others.
Advices to have a mortgage at the best rate
To obtain a loan buyout at the best rate, the borrower must play over time. The shorter the term of the loan, the lower the rate. If the borrower’s repayment capacities allow it, he should not hesitate to choose a shorter repayment period. However, this decision should in no way affect the family’s financial equilibrium. Another tip would be to be ready during periods of low rates. Low rates are dependent on economic conditions. In practice, it will be more attractive to borrow as the interest that the borrower will have to repay will be lower.
Use a broker specializing in credit repurchase
A broker is an intermediary between the borrower and the bank that buys the credits. A broker only receives remuneration if the project is funded. If the borrower’s first wish is to have the lowest possible interest rate, the broker will negotiate with the banking establishments, of which he is a partner, to make him benefit from the best rate in force.
Have a good borrowing profile and a lasting situation
Just like a loan application, the borrower’s accounts will be considered for loan if he wishes to make a credit repurchase. Obviously, the borrower profile must give confidence to the lending institution, subject to collecting a higher rate. Rejects, late payments and overdrafts are negative signals which should be avoided when sending to a bank or lender likely to buy back credits. If the borrower is in this case, it is advised to first of all regularize this situation and to wait approximately 6 months so that his bank accounts are white as snow and that he can hope for a good rate. Also, a stable professional situation is a very essential criterion. If the borrower is an employee, the CDI is the fundamental contract to get a good rate. If the borrower is a civil servant, this is the contract holder. Regarding the self-employed, the borrower must justify at least 3 years of activity. In short, having a better rate in terms of credit repurchase requires meeting all these criteria.