You are 60 years old or more, and the solution of the repurchase of credits interests you, in order to reorganize your budget or face a new financial situation? Be aware that it is quite possible to undertake a loan buyback at over 60 years of age.
Seniors are not at all excluded from this market, quite the contrary. Because longer lifespans are a reality today and we are living longer in good health, financial institutions offer solutions that are suitable for those over 60 years of age.
Buying back credits for seniors
By spreading out over a new period the repayment of several loans combined into one, loan consolidation is one of the solutions available to households who want to reduce their debt ratio. Young workers, single people or couples, salaried or not, everyone can claim this financial package.
The over 60s are no exception to the rule. Whether you are already retired, or still in activity, the repurchase of senior credit is possible. Moreover, the average age of households that have loans; who are therefore potentially applicants for loan consolidation; is only increasing: 13.4% of households in debt were between 55 to 64 years old in 1991, against 17.3% in 2014 according to figures from the Observatory of loans to households.
Forms of grouping loans for people over 60
For seniors who wish to consolidate, all types of loans can be bought back. However, and because very often many senior households own their property, it is possible to use the mortgage buyout. With this form, the value of the property serves as a guarantee of payment. This is an interesting solution depending on the profiles, because in general, after 60 years, borrowing (or grouping loans) is often linked to the possibility of taking out borrower insurance or not.
If the premium required is too high (because you are over 60 or 65, or that the repayment will be made after the age of 70), it may be advisable to use the mortgage buy-back. The property will serve as collateral. It is in your best interest to entrust your request to an intermediary whose role is to find the right overall offer, that is to say combining both an attractive credit rate and total cost of l reduced insurance.
What are the steps to take for people over 60
Because at 60 and over, you have the same rights as other consumers, the conditions required by the organizations are identical to all other households. You will have to communicate personal information, but also provide financial data.
All this information allows you to better understand your situation, and in particular to measure your debt. You will also be asked to make a list of your cash inflows (salary if you are still in employment, current or future retirement pension), but also a list of your recurring expenses.
Are there age limits?
Restructuring debts beyond age 60 has one main limit: age! A loan buy-back operation allows the total repayment of several loans combined into a single one to be spread over a longer period. However, most insurance contracts have age limits. For the lender that grants you the new loan, you are at higher risk because of your age. The latter will therefore monitor not your current age, but the one you will have at the end of the reimbursement.
Generally, full repayment of a credit combination is required before the 90th or 95th birthday.
This theoretically means that you can apply well beyond 60 years, provided that the duration does not exceed this limit of 90 to 95 years. In fact, many other parameters are taken into account (state of health, nature of heritage, etc.). It is therefore recommended to be accompanied by a professional to find the most suitable offer, and decipher the different proposals.