There is an age limit not to be exceeded in the context of a credit repurchase transaction, this limit will depend on the nature of the financing but also on the duration of repayment.
Age in a credit repurchase transaction
Different criteria are involved in a loan buyback operation, there is obviously a verification of the identity of the borrower as well as his financial situation. All this allows to draw up a borrower profile which may or may not agree with the criteria of credit institutions. You should know that each bank defines its own criteria according to its credit production policy, with different durations and in particular an age of end of loan which can differ from one entity to another. Therefore, this limit will depend on the type of applicant, whether the latter is a tenant of his accommodation or owner. Another element will also play, it is the type of financing, that is to say grouping of consumer credit or grouping of mortgage, the durations are not identical.
The age that will be taken into account in the financing study will be the age of the borrower when the latter has finished repaying the loan. To estimate the age limit, banks will rely on statistics on the life of the person. Improving living conditions as well as the quality of care provided to each person makes it possible to reduce life expectancy every year. A positive indicator that encourages banks to regularly review their loan termination age conditions.
Up to what age can you buy a loan repurchase?
The age at which the loan ends is constantly changing, according to the criteria of the banks but also according to their commercial policies. The average age at the end of the loan is as follows:
- Borrower tenant: up to 85 years maximum
- Owner borrower: up to 95 years
This is the age at which the borrower must have repaid the entire loan repurchase agreement. If a borrower tenant wishes to obtain a grouping of his consumer loans at the age of 75, he will have to opt for a maximum duration of 10 years, or 120 months. For a homeowner who is 65 years old, he will be able to obtain financing over a period of 30 years, or 360 months to repay.
It is worth remembering the maximum repayment periods proposed in credit buyback operations:
- Consumer loan buy-back: maximum duration of 12 years (144 months)
- Home loan redemption: maximum term of 30 years (360 months)
Simulate your loan
It is therefore strongly advised to carry out a loan buyback simulation to verify two important elements: the first being the feasibility of a loan buyback operation taking into account the borrower’s situation, the second being to check the loan end ages of each lending institution to list the banks that can provide financing. This will make it possible to obtain several proposals and compare the financing conditions (rate, duration, monthly payment). Note that this approach is offered free of charge and without obligation.