In France, certain credit agreements make it possible to pay one or more times a year a doubled payment. However, can this type of financing be repurchased?
Double monthly payment: an option to reduce the cost of credit
Long considered frozen, the mortgage has new options in recent years, as the double monthly payment. If this option is not the norm for the moment, it is clear that it is increasingly proposed by banks. The double monthly option allows a borrower to double the amount of his monthly payments once or several times a year. It should be noted, however, that banks generally limit the doubling of monthly payments to one transaction per year. Namely that doubling the amount of its maturities even once a year automatically leads to a decrease in the term of the loan and therefore a reduction in the total cost of financing. In other words, with this option, the borrower can lower the total cost of his loan by paying less interest and borrower insurance than was provided for in the loan agreement and in the contract of the borrower. insurance borrower. In addition, the double monthly payment option is often solicited mainly by borrowers who receive an end-of-year bonus, a 13 th month or those who benefit from a sudden influx of money (inheritance, sale of a business) sale of a heritage).
Can we redeem a mortgage with double monthly payment?
If the double monthly option can significantly reduce the initial term of a home loan and reduce its total cost, it can also result in the maximum debt ratio being exceeded. As a result, this option should only be applied in the event of new cash inflows. Moreover, like all types of housing finance (flexible mortgage, loan by installment or loan in fine), housing financing with double option monthly payment can be the subject of a prepayment in whole or in part. Thus, it is possible to buy a mortgage with double monthly payment under conditions of eligibility (stable professional and financial situation, reasonable debt ratio, serene banking behavior). However, if a plan to buy double-monthly credit must meet certain criteria to be accepted, other appreciations may fluctuate depending on the bank or solicitors.