Terms of credit repurchase, there are a number of supports and products which have been directly inspired by the models existing on the market of the traditional banking apparatus.
Payday loan, home loan: reminder
Is thus notorious to find offers to buy back credit in the form of a home loan or in the form of a payday loan whose articulations are very different as are their objectives.
Before going further into the details of these two major families of products, it should be recalled that the repurchase of credit experienced more consequent other financial articulations which became rarer. The repurchase of second mortgage credit, the repurchase of loan accompanied by a mutual guarantee as well as the formula of the repurchase of loan b ked by a repurchase.
The second ranking mortgage is today the prerogative of certain deposit banks which do not practice it any more than for certain profiles, the specialists practically practicing it no longer. The mutual guarantee meanwhile is a formula used in the traditional banking world that allows prospects to avoid notary fees and transfer taxes at a loss since quality deposit, part of it is returned to borrowers and above all the property is not subject to any mortgage registration.
Payday loan and credit repurchase
The formula of the repurchase of credit with payday loan is addressed to two categories of borrowers: on the one hand, the owners having finished paying their real estate outstanding or not wishing to buy back the latter, and on the other hand the tenants who do not can by definition request other types of outstanding.
Generally, the purpose of credit repurchase is to repurchase both personal credits, money reserves and other bank claims, but also to include in the same envelope other claims of a fiscal, social or even private nature.
In its articulation, the loan repurchase is based on a duration ranging from 5 to 12 years depending on the lending institutions with rates varying between 4.5 and 9% approximately.
The mortgage and the repurchase of credit
Represents a larger share of the market in volume, even if the repurchase of personal credit includes more units. It has more advantages than the repurchase of mortgage, because much more flexible in duration and rate. The durations oscillate as in traditional real estate between 8 and 35 years for rates going from 3.5% to 6% according to the profiles and the files.
This double advantage often allows a significant reduction in existing financial charges. In addition, these devices are equipped with significant modularity mechanisms such as reductions in duration without penalties while respecting debt, etc.