To lower their monthly payments or the cost of their credits, a borrower can opt for the repurchase of their credit. In this case, he must negotiate the redemption with the bank or the lending institution. For this, there are several levers.
Negotiation of redemption of credit
Negotiating a loan buyback cannot be improvised. You must first prepare your file well and provide the guarantees of its financial stability (income, bank statements) and do not hesitate to play competition. To negotiate well you have to be well informed. So the borrower knows the possibilities available to him from different lenders and can use it to tip the negotiation in his favor. As it is not always easy for an individual to negotiate, he can call on a broker who has more control over the levers of negotiation.
The rate is one of the first points of negotiation. It is often in the event of a fall in market interest rates that a loan repurchase is considered. It is therefore necessary to know well what is practiced at the time of redemption to negotiate the most attractive rate. Once again it is important to bring competition into play. But the rate is not the simplest part of the negotiation.
Negotiate credit redemption fees
This point, often overlooked, is nevertheless essential, it is there that a large part of the negotiation can be done especially for the grouping of consumer loans. Fees are one of the negotiable points and can make it possible to lower the cost of credit considerably.
Negotiate credit redemption insurance
Often the banks strongly encourage the borrower to take out credit insurance. But the insurance offered by the bank is not necessarily the most attractive financially and does not always take into account the profile of the borrower. It is then possible to call on external insurance. The bank cannot oppose it and is even obliged to present this choice to the borrower. The borrower can also negotiate the indemnities in the event of early repayment and review the duration of his loan.