How does mortgage loan consolidation work?

Do you need to consolidate your existing mortgage with another mortgage? Is the end of the interest rate fixation approaching the current mortgage? Will you pay the change fees? And what is a consolidation mortgage? Loan providers finance we have prepared answers for all these questions and will guide you through consolidation your mortgage step by step .

The concept of loan consolidation means repaying an existing mortgage loan with a new mortgage loan , usually with more favorable terms and continuation of repayment.

ATTENTION! Mortgage interest rates are rising steeply, and if you are thinking about mortgages or consolidation your existing mortgage, you should already be interested in taking advantage of the still acceptable mortgage terms.

When to deal with loan consolidation?

Fixing of interest rates in the Czech Republic is usually one-year, three-year and five-year. For this fixed period of time, the interest rate becomes fixed.

About three to four months before the end of the interest rate fixation period and in a situation where the terms and conditions of a new bank are more advantageous, a loan consolidation period for each mortgage owner occurs.

At the approaching end of the fixation period, interest rates are consolidated without fines and penalties.

Simplify your loan consolidation process

Push your existing bank and try to negotiate the best conditions for the new fixation period. After the negotiations, focus on consolidation offers from other banks and discuss them in advance with your existing bank. If you offer comparable, or even better, terms and conditions, consolidation your mortgage with a new bank will be eliminated.

The easier way to consolidate your mortgage is to push your existing bank!

When deciding to consolidate a new bank with a mortgage, get ready for re-papering and a few fees to do so. How does a new bank consolidate a mortgage work? And what is needed to consolidate a mortgage?

If you need help consolidation your mortgage, or have any questions, do not hesitate to contact us at any time!

Debt consolidation: what is it?

Too easy credit, an incentive consumer society, an accident in life, all these factors may lead to excessive debt. You have too much debt, deadlines always more difficult to honor and a purchasing power reduced to a skin of sorrows? React quickly to prevent the situation from getting worse. Think about loan consolidation .

What does this consist of ?

This banking operation offers you to collect all or part of your outstanding loans in one credit to close by anticipation through a new loan called “restructuring”. The latter will be spread over a fixed period and reimbursed by a single deadline, reduced and adapted to your repayment capacity and a debt ratio of less than 33%. The lending bank will take over the debt and pay the loans to the various organizations.

Loan consolidation covers all consumer loans, loans, auto loans, personal loans as well as bank overdrafts.

The repurchase of credit can also integrate a mortgage. If the outstanding amount represents more than 60% of the total amount of the restructuring operation, the new credit will be considered as a mortgage. If this operation can be interesting, it deserves a thorough study because the longer the repayment period, the more the credit is expensive.

It should be remembered that the repurchase of credit is not exclusively reserved for people strangled in excessive indebtedness. If you have several loans that you can repay perfectly but you want to finance a new project or you make savings, it will be interesting to reduce your debt ratio by consolidating all your credits.

The benefit of a single reduced monthly payment

By choosing to buy back your credits, you will rebalance your budget by considerably reducing your monthly payments, in some cases up to 60%. Instead of repaying several small loans, often with very high rates, as is the case for revolving loans, you will have a new loan spread over a longer period but with a single term that will leave you more comfortable and therefore a higher purchasing power.

Enjoy a fixed and lighter interest rate, more advantageous

If you have several cash reserves whose variable rate often exceeds 16%, it becomes more interesting to group them into a single credit that will be assigned a fixed rate generally between 7 and 9%. You could also take out consumer credit at a time when rates were higher. If the redemption proposal made to you announces a lower rate, you will enjoy much lower monthly payments .

For the redemption of my credits how to do?

Too many loans? Do not wait any longer, think about buying credit! Lighten your debt and find a financial ease that will allow you to offer some pleasures that you had lost the habit and better live simply.