Due to the uncertain repayment of their claims, banks may be reluctant to give senior citizens credit.
The maximum age to redeem credit is freely set by the lending institution. However, banks agree on a theoretical age according to the borrower profiles. How old can we use credit pooling? Answers.
Credit redemption: up to what age is the transaction feasible?
The age limit for redeeming credit depends on the borrower’s current age and the length of the loan. In the case of a purchase of consumer credit granted to a borrower owner, this age is 85 years at the end of the loan. In the case of a mortgage purchase, the age of loan completion can reach 85 years or even 95 years at some institutions.
The maximum age set by banking organizations tends to increase. Indeed, these take into account the lengthening of the service life. If the life expectancy of a Frenchman was 72 years on average in the early 1970s, it is now estimated at 83 years. This increase in life expectancy is mainly related to technical and technological progress in terms of lifestyle, risk prevention and pathology detection.
Before issuing an offer to buy back credit, the banks also assess the borrowing capacity and the state of health of the borrower. Seniors no longer have dependent children and often have substantial wealth. Therefore, their profile may interest banks. If the borrowing rate granted to the over-60s is generally similar to that of a 40-year-old borrower, the cost of loan insurance is an important point to consider. The amount of this premium can weigh heavily in the total cost of credit. To try to get a cheaper contract and extended warranties, it is advisable to play the competition.
Tenants: What is the maximum age to redeem credit?
As previously stated, a homeowner can set up a credit buyback until the age of 95 at the end of the loan. But what about tenants? Tenants do not own their homes and therefore pose a higher risk to banks. In addition, their wealth is generally lower than that of owners. Credit institutions are therefore more cautious with this type of profile and limit the age of end of repayment to 84 years.
Thus, in general, the age limit for making a credit surrender depends on the bank and the duration of the loan. To determine the feasibility of this operation, do not hesitate to use an online credit redemption simulator. It will also give you an idea of its cost. It should not be forgotten that, from a financial point of view, this operation is not always interesting for the borrower.