Lenders, panel and loan offer
Mortgage guarantee: who issues it, and how to recover what is due to you
Lost commission, refundable mutual fund: who guarantees your loan, whom to write to after settlement, and how to recover what is due to you.
The guarantee for a mortgage is issued by a third party who undertakes an obligation towards the bank: a professional guarantee body, a professional mutual society, or, less commonly, a relative. Of the fees paid, the commission remains the property of the body; only the contribution to the mutual guarantee fund may be refunded, after the full repayment of the loan, upon written request, without any automatic process or guarantee.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The guarantee is a third party who undertakes an obligation towards the bank, not towards the borrower: it protects the lender, not the person in difficulty.
- The guarantee fees cover two distinct items: a commission that is definitively acquired, and a contribution to a refundable mutual fund.
- The refund of the mutual fund only occurs after the full repayment of the loan and is neither automatic nor guaranteed.
- These guarantee fees are included in the annual percentage rate of charge, unlike acquisition costs which are excluded from it.
- Request the refund in writing to the body, with a copy to the bank, attaching the final statement of the loan.
The guarantee is the only item in the financing where a portion can be returned to you once the loan has been repaid. No one will write to remind you: here is who issues it and how to recover what is due to you. The other documents from the lender: the lenders and their documents.
Who exactly acts as guarantor for your loan?
A third party who undertakes to pay the bank if you do not pay: a guarantee body, a professional mutual insurance society, or, more rarely, a relative. You may request the lender to appoint a different guarantor than the one it proposes.
This is your only margin of manoeuvre on this item, the cost of which is not fixed by any regulation.
The guarantee does not protect you: it protects the bank
If you cease to pay, the body pays the bank, then turns against you. Your debt changes creditor: a guarantee is not an insurance policy.
The lender must explain to you how it can be invoked; otherwise, request this in writing. A relative acting as guarantor must write the amount of their commitment themselves, in words and figures.
What you pay: a fee and a deposit
- a commission, due to the body;
- a contribution to the mutual guarantee fund, partially refundable.
The schedule varies according to the body: the comparison of guarantees. Require in writing the breakdown between the two lines: without it, you will not be able to claim anything back.
Are these fees included in the annual percentage rate of charge?
Yes: Article R. 314-4 of the Consumer Code classifies the mandatory guarantees required to obtain the credit within this rate. Acquisition fees, however, are excluded from it.
A share is due to you, if you claim it
The participation in the mutual fund, never the commission, after the full repayment. The amount depends on the rules of the organisation and the defaults covered: no rate is set.
The organisation only has your original address, the balance of the loan triggers no reminder, and the sum is not revalued. Do not budget it as an income.
Who to write to, when, and with what
- Wait for the final statement of the paid-off loan.
- Identify the organisation on the loan offer, in the guarantees section.
- Write to it, with a copy to the bank: loan number, subscription and settlement dates.
- Attach the final statement, the offer, the subscription document, a piece of identity, a bank account statement and your current address.
- Request the details of what is refunded or not.
- Without a response, follow up, then proceed via complaints and mediation (FR).
Write, do not telephone: the date of your request counts.
What can reduce the amount you are entitled to
- Failures covered by the fund.
- An incident on your loan: missed payment, deferral, renegotiation.
- A loan buy-back: claim the first guarantee; it does not merge into the second.
- A death: the heirs claim it with the certificate of notoriety.
Le point de départ n'est pas la date du dernier acte : le texte vise le jour où le titulaire d'un droit a connu ou aurait dû connaître les faits lui permettant de l'exercer.
- En vigueur depuis le
- Source
- Article 2224 du code civil — Légifrance
Write as soon as the final settlement statement is received.
With a mortgage, nothing is returned
Assise sur les sommes ou valeurs de la créance garantie énoncées au bordereau. C'est une taxe : elle ne revient jamais, à la différence d'une part de la caution.
- En vigueur depuis le
- Source
- Légifrance
In the event of a sale before the term, the registration is lifted:
Les tarifs réglementés du notaire sont exprimés hors taxes : cette taxe s'y ajoute.
- En vigueur depuis le
- Source
- Article 278 du code général des impôts — Légifrance
The three moments when the guarantee is reassessed
- Early repayment: the guarantee is extinguished; request its return. Early repayment compensation.
- Transfer of the loan: the guarantee follows; nothing is returned. Loan transfer.
- Release from joint and several liability: the guarantee is redone. Buyout of the balance.
Is the loan offer lacking a clear breakdown? Create your file or have its guarantees reviewed by telephone.
Sources
Read next
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- Repaying your mortgage early: paying the compensation fairly Repaying early is a right. The compensation is due only if the contract provides it, capped at the lower of two calculations. The exempt cases.
- Buyout of the equalisation payment and release from joint liability: keeping the property and taking over the loan alone Equalisation payment, transfer duty, bank consent, deadlines: what you need to arrange to keep the property and take over the loan alone after a separation.
- Transferring your mortgage to another property and keeping your rate Keeping your rate when moving: where to find the transferability clause in your loan offer, its conditions, and the solutions when it is missing.
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