Retiring has become for seniors the start of a new period of working life. Although the fall in income is inevitable, new projects are to be financed and the repurchase of credits can be a solution to reduce the expenses while profiting from a better purchasing power. What are the benefits of buying credits for seniors? How can people over 65 benefit from it?
Here are some answers for you.
The advantages of buying back credits for seniors
With the current maintenance of very low rates, the repurchase of loans has become particularly popular with borrowers. By consolidating their loans and then having them replaced by a single loan at the most advantageous rate, they can reduce their monthly payments (up to -60%) while benefiting from simplified management. In addition, the repurchase of credits also makes it possible to finance new projects by integrating into their consolidation loan an additional sum.
The grouping of credits is therefore ideal for seniors and especially retirees who wish to reduce their expenses to benefit from greater purchasing power despite the drop in their income.
Retirement is also the start of a new active life period. Holidays to finance, children to help, a car to acquire, as many projects as the purchase of credits will make it easier to finance.
A solution suitable for people over 65
Lending organizations are now more inclined to respond favorably to requests from people over 65 and offer solutions adapted to everyone’s needs. Subject to certain conditions being met, seniors will be able to benefit from the advantages of a loan buyback operation until the age of 75.
For example of conditions to respect: the banks impose an age of end of loan which is between 80 and 95 years, according to the profile of the borrower. They also recommend taking out specific loan buy-back insurance. In addition, seniors wishing to buy back credits will be advised to take out death-disability insurance (ADI), in order to reassure the lending institution and put the odds on their side.
Good to know: everything can be grouped together in a loan buy-back: mortgage, works loans, consumer loans, debts, revolving loans, etc.