Consolidate existing loans to combine them into a single loan, with a lower rate and a longer duration, it is possible, even if you are a tenant! Indeed, you can reduce the weight of the monthly payments of your loans with a restructuring operation, even without owning your property. What are the conditions? How to defend your file? Here are our responses.
Request a loan buyout while being a tenant
If you are a tenant, it is possible that your rent, added to your other expenses, starts to weigh for a significant part of your budget. Between a car loan, several consumer loans and perhaps even a revolving loan, you probably have difficulties with your finances.
If late payment of rents, arrears or debts start to multiply, it is important to react. The grouping allows you to find a more serene management of your budget, by reducing the pressure of your credits on your monthly finances.
The share devoted to housing varies according to the activity of the tenants, but is generally equivalent to a third of income. Thus, according to data from the LocService 2016 Observatory, managers spend 29% of their income on rent, while an interim tenant will spend 36%, and an employee 37%.
The average rent in France in 2015 was $ 624 including charges, an increase of $ 10 over one year. By adding your fixed expenses (food, energy), your leisure expenses and your current credits, the budget can be tight … Hence the interest of the operation.
Possibilities to buy back loans for tenants
A large part of the redemptions granted are projects for tenants. These are simple profiles, generally without mortgage to consolidate, which simplifies the assembly of the file and the fact of having a positive response. There are several cases.
- You are the tenant of your main accommodation, and pay rents;
- You are a tenant of your main home, but you own a secondary house;
- You are hosted free of charge (by a relative, family or partner).
Whatever your situation as a tenant, you need to present a few key characteristics in order to have a strong file, which the credit organizations will agree to finance. Being an employee on an open-ended contract (CDI) is obviously a strong point.
But you can also have your file accepted if you are a retired tenant or a tenant in an independent or liberal profession, or even on a precarious contract (fixed-term contract, interim). The rule is simple: you must be able to justify regular income over the last three years.
Banks seek to avoid the risks of non-repayments. They therefore ask you for guarantees, and are sensitive to files without payment incidents, and with a certain stability. The fact of being a tenant is not penalizing.
The advantage of buying back loans for tenants
Using the grouping solution when you are a tenant is a way to take care of your budget. But not only ! Since you are renting, you probably want to buy real estate, in the short, medium or even long term. Buying back credits can help.
- This solution helps you to better balance your budget quickly. Faced with an increasing rent, increasing charges, and your decreasing income, you can use the grouping to adjust your ratio between your expenses and your income;
- It will reduce the weight of your repayments, and spread your new credit over a longer period. This means that you have improved savings capacity every month. It is a starting point to finance a real estate purchase one day;
- Finally, the restructuring allows tenants to anticipate a change in situation (retirement, moving) or to carry out new projects (travel, car, equipment).
Ask the Capital Lender experts to find the best solution for your profile. If you are a non-owner tenant or owner tenant, and you can provide a mortgage guarantee, the preparation of the file will vary. Contact us for more information.