To access the credit pool, a bond is sometimes required. But is it necessary to resort to the family guarantee? The point on the three types of repurchase of credit with guarantor.
One third for guarantor
When borrowers submit a request to buy a credit to a financial institution, it is sometimes to benefit from better conditions thanks to the fall in interest rates, but it is often to reduce the monthly payments in order to cope, by for example, loss of employment or newly contracted credits. The bank can ask for a guarantor. The borrower usually turns to his parents or relatives whose financial income is higher.
This guarantor then undertakes to take the place of the borrower if he can not repay his monthly payments. The credit institution is then reassured and can more easily grant a repurchase of credit with guarantor.
Use a surety organization
Borrowers can not always appeal to relatives for the credit redemption bond. On the other hand, they have the possibility of soliciting specialized organizations. The surety agency commits to repaying the installments in the event of default by the borrower. This insurance, which also makes it possible to group its credits, has a cost. In fact, this type of bond for the repurchase of credit costs about 2%, even 3% of the bonded amount, which can represent a significant sum in the context of real estate loans.
Zoom on the mortgage surety
There is a third way to benefit from a repurchase of credit with guarantor: the family mortgage surety. In order to make a loan application file more solid, it is possible to propose to the funding body the mortgage of the property of a parent. This solution can only be considered if the lending institution can be the first beneficiary during a possible foreclosure.
We are talking about first mortgage. Finally, note that the repurchase of credit with mortgage guarantor must constitute a last resort since the mortgage guarantee assumes notary fees contrary to the guarantee of a third party or a surety organization.