Is it possible to combine a work loan and a mortgage? The question arises frequently when acquiring a property to renovate or when major adjustments are required after the purchase.
Whether it is extension work, insulation work on the attic or the construction of a pool, the bank will offer several financing solutions. Among them is the grouping of credits. How to group a credit work and a mortgage? Explanations.
The principle of pooling credits
This transaction consists of reducing the monthly payments corresponding to loans in repayment in exchange for an extension of the borrowing period. Consolidation of credits allows the borrower to pay more than a single monthly payment adapted to its ability to repay. For example, it is possible to combine a work credit and a mortgage. Be careful, however, the amount borrowed to finance the work that, added to the mortgage, will have to stay within the limits of your debt capacity. Maturities should generally not exceed one third of your available income.
Before accepting your loan consolidation request or not, it is very likely that the bank will ask you to attach the quotes of the companies chosen to carry out the work. The grouping of loans is therefore recommended only in case of heavy and expensive renovations, carried out by professionals. If not, it is recommended to take out a work loan separately.
Grouping a work loan and a mortgage: the benefits
There are several advantages to using credit redemption. First, it allows the borrower to see more clearly in his budget and determine a specific amount of living remains. Indeed, after the implementation of this operation, it will have only one monthly payment to settle with a single interlocutor for all of its loans.
The use of loan consolidation primarily reduces its debt ratio which is useful for financing a new project such as renovation. Finally, the borrower can take the opportunity to negotiate the terms of the new loan and in particular early repayment penalties or the modulation of maturities.
Why simulate his credit redemption works online?
Grouping a work credit and a home loan is not always an interest for the borrower. To determine the cost and benefits of this transaction, it is advisable to use an online credit redemption simulator . To do this, simply complete a form indicating the essential information about your initial loan (amount, outstanding principal, rates, monthly payments …) and whether you have other credits in the process of repayment. The tool takes this information into account and searches for the best credit buy offers available.
After choosing the offer that suits you, you just have to contact the establishment that offers it. This one will study your request and will bring you a fast answer.