Retirement for senior employees refers to the end of the full salary payment. from now on, Hence, he has to contend with his pension as well as any supplements he deserves.
This does not bode well, especially for a family that still has to pay off the mortgage. In fact, there is a real danger to the financial position of the debtors, hence the need to opt for renegotiation.
Review the terms of your contract with the bank
In fact, it is entirely possible for you to discuss with your bank about your current mortgage. The aim is to have a redefinition of the terms of the contract that were agreed upon in the rule.
In particular, this would make it possible to obtain more favorable conditions, after the decrease in income caused by the cessation of his professional activity. People over 60 years old should consider this option.
In this case, several points can be the subject of discussions between the credit institution and its client. However, attention should be focused, first, on the rate of interest. The current situation is favorable for a regression, with percentages seen so far reaching historically low levels. On the other hand, in order to reduce the overall cost of borrowing, loan insurance premiums may also be subject to renegotiation.
Depending on the applicant’s status and status, banks can actually make a move. However, they are not obligated to accept, as this will obviously have an impact on their earnings. But to maintain a good relationship with their customers and be able to offer them other products, sometimes it is in their best interest to accept a renegotiation.
What about buy back credit?
It may be difficult to talk to some financial institutions. In fact, they really don’t tend to change anything in the loan contract for some seniors. The best solution in this case would be to order a repurchase of a loan from a competitor.
It is already likely that other banks will be interested in the file of the retirees involved. He can then settle the debt with the original institution to recover the contract. On the same occasion, The terms can be modified in a way that is more beneficial to the debtor. In particular, a new lower interest rate is expected. However, in order to cover the costs, the final payment date can be postponed.