Credit renegotiation without insurance

It is always possible to renegotiate the downward or upward his credit with the lender. But nothing requires your lender to accept this renegotiation.

The Bank is required to lower the interest rate for the category of loans supported by the State

The renegotiation of a loan is an operation by which your bank will replace the current credit by a new credit. If this change is made from another institution, known as '' loan redemption ''.

In General, better will be your relationship with your bank Advisor, more will be possible a negotiation. But what negotiate?

We renegotiate on the interest rates or over the life of the credit, which has change decreasing or increasing your monthly payments.

Negotiate the interest rate

If you want to renegotiate to lower your interest rate (fixed or variable) is that you consider that the evolution of the economic situation and financial markets oriented rates downward and you want to take advantage of this windfall effect. But the original contract cannot be changed without the agreement of both parties, and if some establishments will accept a drop, others will reject it without infringing the law.

If the institution refuses, you have two options that need to be studied carefully:

·       proceed to a prepayment, but this may cause a penalty, which will not necessarily be offset by the expected gain by the rate of new credit that you have been able to contract, likely from another institution;

·       do you redeem your credit by another establishment, but you will have also to set a penalty for prepayment to your current lender.

Negotiate on the duration of your credit

You may want to renegotiate the duration of your credit. If this possibility is provided for in your original contract, your lending institution cannot oppose, but otherwise, he may refuse.

In fact, it is less the duration of your credit as the monthly payment that will be modified, depending on whether your contract explicitly provides a Faculty of increase or decrease in the monthly payment. Contractually, if there is agreement of the two parties, this agreement will result in an amendment to the original contract which will determine the overall effective rate, the new schedule of depreciation and the total cost of the credit calculated on deadlines and fees to come.

If there is no need of new prior offers, you will have a cooling off period of 10 days from the date of receipt of the written information provided by the lender.