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Credit Redemption and Fictitious Rent (Third Party Accommodation): Explanations

 

Borrowers who are housed for free can set up a credit surrender under certain conditions. This operation can enable them to reduce their monthly payments, to rebalance their budget or to finance a new project.

Many households are housed by a third party or a family member. This temporary situation the time to rent or buy a home can drag on. In this case, it is always possible to resort to the repurchase of credit. Discover how the purchase of credit works with the principle of fictitious rent.

To resort to the repurchase of credit being housed free

To resort to the repurchase of credit being housed free

A borrower with several loans in the process of being reimbursed may apply for a repurchase of credit by filing his file with a bank or organization offering this type of transaction. To make its decision, the establishment will study the applicant’s situation and in particular his expenses and income thanks to the supporting documents provided.

When the borrower is sheltered free of charge by a third party, the bank takes into account a fictitious rent, that is to say an amount equivalent to a rent although the plaintiff does not settle any. In fact, the credit institution considers that this accommodation situation is temporary and that the additional burden of paying rent could affect the repayment capacity of the monthly payments. If the banking organizations calculate the fictitious rent it is therefore to anticipate a possible change of situation.

The conditions to set up a credit buyback with a fictitious rent

The conditions to set up a credit buyback with a fictitious rent

In most cases, the borrower uses credit redemption to more easily support monthly maturities. However, if the applicant is housed free of charge at a third party, the amount of the notional rent may affect the bank’s decision. The increase in the debt ratio may lead to a refusal of financing.

To put the odds on his side, the subscriber has an interest in offering solid guarantees such as the mortgage or to borrow with another person who will participate in the repayment of the credit.

Get a buy back credit without a fictitious rent, is it possible?

Get a buy back credit without a fictitious rent, is it possible?

Few banks accept credit redemption requests without fictitious rent. As a reminder, this operation implies an extension of the borrowing period and a higher total cost. Thus, the bank will not wish to take any risk and will systematically calculate a fictitious rent. The consideration of the latter also represents a security for the borrower since it avoids him further financial complications thereafter.

In any case, it is possible to go through a broker, a bank or a credit institution to set up a credit redemption. By soliciting multiple actors, the borrower multiplies his chances of getting a financing proposal quickly.

To find the best offer to buy credit with fictitious rent, do not hesitate to use an online comparator. You will get an estimate of your new monthly payment that you can compare with the ones you currently pay.

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