To get out of the spiral of indebtedness or simply out of the need to finance new projects , consumers are increasingly turning to the solution of current loan redemptions . This financial operation which consists in bringing together all or part of the credits in one allows to reduce the monthly payments and thus to relax the budget. A question is regularly asked to finance experts: is it possible to renegotiate loans at zero rate? We answer your question in this press release.
Extract from the official website Gouvernement.fr
The 0 loan: what is it?
First of all, it is necessary to define the Zero% Rate Loan (more commonly known as the PTZ ) in order to understand its interest. In order to allow French households to have access to property, the French government has set up a free loan (without interest) which is granted under certain conditions. In fact, it should be remembered that the 0% loan can be requested by adults who are new owners of a main residence . The purchase can be made in the new as in the old one with work. The loan amount varies depending on:
- the geographical area ,
- income ,
- the composition of the household .
In short, the 0% loan is already an interesting financial product that should not be renegotiated.
Why is renegotiating a 0 rate interest-free?
Homeownership is difficult for low- income households. It is mainly for this reason that the zero rate loan was imagined. This particular loan therefore has the same basic objective as a repurchase of credits: to optimize the consumers' budget with low monthly repayment installments . In fact, when a household wishes to have recourse to a loan repurchase, it seeks a low rate. A problem can therefore arise: how to find a loan with a rate of 0%? This research is obviously impossible. So, how to take advantage of the advantages of repurchasing credits when you have a 0% loan? Here is a new question that deserves an answer.
The repurchase of credits and the loan at 0% rate
If the PTZ cannot be taken back by credit organizations, one is entitled to wonder if it is possible to transfer it to the establishment which redeems its loans. This question must still be answered in the negative. The PTZ remains with the lending bank until the end of the term of the contract. It is possible, all the same, to renegotiate your classic mortgage on condition of not having mortgaged the acquired real estate. In this case, the PTZ will remain at the original bank. The consolidation operation will focus on mortgage and consumer loans. Be careful, however, the monthly PTZ payment is taken into account in the calculation of loan refinancing. If the debt ratio is too high , the credit organization (or bank) may reject your request for consolidation.