If you are about to make a credit surrender transaction, then, a question arises “What depreciation period to choose? “
The repurchase of credit over 10 or 12 years
Generally, when an individual makes a 10-year or 12-year credit redemption request, this is usually a consumer credit buyback. In fact, the average amortization period of a credit buyback transaction for which plan does not exceed 144 months does not statistically include the outstanding principal amount of a home loan.
This is because a mortgage with a repayment term of less than 120 months is theoretically halfway through its life. Assuming that the average duration of a mortgage is greater than or equal to 240 months, and that at this stage, the monthly repayments are made up to more than 50% of capital.
Thus in this configuration, it is question of obtaining for the borrower(s) an unsecured credit backed by the bank. In this case, the lending institution grants a prior offer of credit whose properties of the contract are not subject to the obligation for the subscriber(s), to provide a guarantee of a mortgage or surety.
The 12-year money-back guarantee loan with no guarantee reserved for individuals is actually a loan in the form of a depreciable personal loan.
The repurchase of credit over 15 or 20 years
Although a credit repurchase organization may distribute a 15-year unsecured credit surrender offer, as detailed in the above-mentioned paragraph, ie under the LCC regime, but this type of client record rarely achieved by getting a favorable opinion from bank. The files are generally refused because too risky for the lending institution.
It is necessary to count for a repurchase of credit over 20 years or rather from a repayment period equal or more than 15 years, a plan of aspect mortgage loan. To better control the insolvency risk of the debtor(s) over a long period of payment, the bank requires a security mortgage dimension.
The provision of a mortgage security class is essential to claim to be eligible for a loan in the format of purchase of credits with guarantee, the banking product is accessible only to the owners of a property. One or more buildings of a market value estimated by a real estate expert, and which must be greater than the amount financed by the creditor.