Borrowing money has never been so cheap.
"Naturally the rates depend strongly on the quality of the file and the duration of the loan chosen, however the partner banks of CREDITSIMMO.LU can today offer interest rates below 1%. Thus our teams are increasingly called upon to organise a credit repurchase or to renegotiate an existing mortgage. "
The question is whether the operation is profitable and whether all borrowers are concerned.
What is the profile of the borrower who might consider taking this step?
"You have to look at the situation on a case-by-case basis but typically a borrower who signed up to a mortgage after 21 March 2016 with a high interest rate is in a clearly favourable position to buy back or renegotiate their loan. "
The benefits are obvious, in addition to the reduced cost of interest, you will be able to reduce your monthly payments or shorten the term of your loan.
Is repurchasing or renegotiating a loan more interesting if I have taken out a variable or fixed rate loan?
"In the Grand 'Duchy, for example, any customer has the right to repay a variable interest rate loan at any time and replace it with another fixed or variable interest rate loan without having to pay penalties.
But renegotiating a fixed rate can also be very interesting, especially as the transposition of a European directive into Luxembourg law in December 2016 has since limited the amount of penalties to six months' interest for all loans granted from 21 March 2016. This regulation applies to early repayments of fixed-rate loans up to a maximum amount of €450,000 and you must have occupied the property yourself for at least two years.
It is not possible to make a general recommendation for redemption. Only after a detailed analysis of our client's situation can we take a position. "
CREDITSIMMO.LU offers you a free analysis of your existing loan and compares it with the conditions offered by our partner banks. If the operation proves to be profitable, its credit experts will be able to present you with an appropriate offer.
Contractually, the bank cannot refuse early repayment, even with a fixed interest rate!
"Your bank has taken a risk by granting you a fixed-rate loan, it cannot refuse but will do everything it can to ensure that the loan is completed.
As you can see, it is better to be accompanied by an expert.
The real profit or loss of a possible repurchase must be determined in order to make the best decision!
"Every situation is different, we have to take into account the past and future situation of our clients; what type of loan, what rate, what term... does the client want to keep or resell their property in the short, medium or long term. We also have to take into account the wishes of our clients. Some will prefer us to help them negotiate at their own bank and others will want to switch banks and buy back their loan. "
"At the beginning of the mortgage, the interest part is the highest. That's why we recommend renegotiating the rate during this period, as the loan amount decreases over time. "It is therefore preferable to buy or renegotiate your mortgage during the first third of its term.
How can the creditsimmo.lu team assist its clients for free?
"Today we are working for free for our clients, advising them and negotiating in their sole interest. It is our partner banks who will pay us for the work we do. Our approach is totally transparent to our clients and partners. We take care of all the steps involved in putting together our client's file and submitting it to our partners, collecting, comparing and presenting the best offers to help the client make a choice. "
Do you always win?
"Certainly by contacting us. If it is profitable for our clients to negotiate, we will do so and if it is not worth it, we will say so clearly and there will be no question.
Does a client ever negotiate more effectively than you?
"Nothing is impossible and besides, we are hiring... but sincerely if our readers have read this article up to this point it is because our advice will be beneficial to them. We are very good negotiators and the rate is not the only parameter to take into account...
However, beware, most of the time, if the client contacts a bank directly, it is rare that it will then agree to negotiate with us...
A word of advice: come and see us first.
If you also wish to buy back or renegotiate your loan, you can contact the CREDITSIMMO.LU team
(Interview with Georges Spanier CEO of CREDITSIMMO.LU)