How to combine two home loans?

A borrower can find himself following the realization of real estate projects with two loans, it is possible to group them in a single mortgage in order to repay a single monthly payment.

A borrower can end up with the accumulation of several real estate loans in the process of repayment, whether it is linked to a first acquisition followed by works or whether it is linked to a rental investment project. The idea being that with two home loans, it is not simple to juggle the expenses and the expenses of the hearth, it is thus necessary to find an alternative solution which is that of regrouping the two home loans. The setting up of this type of operation is simple since the loans are repaid in advance and the organization in charge of the repurchase of the claims then proposes a contract with the sums due from the two old housing loans.


Redemption of two mortgage loans: how is it going?

mortgage loans

The operation is relatively simple on paper but it requires a solid financial package, ideally set up by a specialized company such as a credit institution or a broker. First of all, it is necessary to carry out a simulation on a specialized site, it makes it possible to take the temperature on basic data such as the debt ratio, the rest to live, and especially the feasibility of the project which is pronounced after validation. Obtaining several proposals above all makes it possible to compare and negotiate the best reimbursement conditions in the proposed financing plan.


Combine the two home loans

home loans

The first step is to combine the two home loans into one and for this, the borrower needs to know the exact amount of the remaining amounts to be reimbursed, this will allow the banker to define the amount to be released to buy these outstandings. Prepayment costs may occur, they will not exceed 3% of the remaining amounts due or the equivalent of 6 months of interest to be reimbursed. As soon as the file is complete, the funds are released but it is the bank that keeps the hand and which addresses the repayments to the old creditors, not the borrower. If a mortgage guarantee is put in place, the funds are transferred on the day of the visit to the notary.


The new contract including the two old loans


Who says a new contract says new conditions and that’s where it all comes into play, it is possible to negotiate the rate because if the operation only includes mortgage loans, financing will be based on the lowest mortgage rates of the market, a positive point. Good to know: you can include consumer credit in this type of transaction. The new direct debit will be unique and it is possible to choose the date, just as it is possible to adjust the repayment duration. Finally, only one guarantee will be put in place, either a mortgage or a deposit, and the old ones will be withdrawn, this is what is called a show of hands in the field of mortgage guarantees.

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