Buyouts, renegotiation, bridging loans
Remortgaging in Lyon: the steps, in order, for changing bank
Having your mortgage taken over by another bank: documents, processing, offer, settlement of the old loan, and the pitfalls that cause a remortgage to fail.
A mortgage remortgage proceeds like a new loan, with one additional step: settling the old one. In order: gather the documents for the current loan, calculate the profitability, request a renegotiation from your own bank, then submit a complete file elsewhere, reviewed as a new application. Once the offer is accepted, the new bank repays the old one based on a dated statement.
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)
The update date is the date the content was last checked against its sources.
Key points
- A renegotiation is handled at the original bank by amendment, without new security or compensation; a remortgage is not.
- A remortgage is processed as a new application: your situation is reviewed as of today's date.
- The dated early repayment statement sets out what remains to be paid: outstanding capital, accrued interest and compensation.
- The early repayment compensation is capped by two regulatory limits; the lower of the two applies.
- The remortgage does not end with the transfer: it remains to verify the cancellation of the old insurance and the old security.
A mortgage buyback proceeds like a new loan, with one additional step: settling the old one. Follow the steps of a mortgage buyback without double instalments: start the insurance, the security and the settlement early.
Renegotiate or buy back: profitability first, then your bank
Calculate the profitability, then write to your bank: a renegotiation can be concluded there without new security or compensation. A buyback elsewhere comes if it refuses.
The calculation: the profitability of a buyback. Does your loan date from late 2023 or early 2024? Three calculated cases: should it be bought back? If your bank accepts, it sends an amendment. If it refuses, leave: the early repayment does not depend on its agreement.
L'avenant est la seule forme que peut prendre la modification du prêt d'origine. Il comporte un nouvel échéancier et le taux annuel effectif global recalculé sur les seules échéances à venir : c'est sur ces deux éléments que la proposition de votre banque se compare à une offre concurrente.
- En vigueur depuis le
- Source
- Article L. 313-39 du code de la consommation — Légifrance
Le remboursement total — celui d'un rachat — n'est jamais concerné par cette limite, qui ne vise que les petits remboursements partiels.
- En vigueur depuis le
- Source
- Article L. 313-47 du code de la consommation — Légifrance
The documents that save time
| Document | What the new bank reads from it |
|---|---|
| The original loan offer and its amendments | The interest rate, the term, the early repayment clauses, and the security taken |
| The up-to-date amortisation schedule | The outstanding capital and the remaining term, which determine the amount to be redeemed |
| The policy and the insurance certificate for the borrower | The guarantees and the proportion in place, to build the new cover |
| The title deed and the latest council tax bill | The property that will serve as the support for the new security |
For you, the list for a purchase: the documents to gather.
Instruction: three agreements to obtain
Your situation is reviewed as of today: a transfer to your account or a new credit facility can lead to the refusal of a profitable redemption.
- The bank: the amount, the term, the interest rate, first in an agreement in principle.
- An insurer: a new policy, often the longest stage. Start it from the very first day.
- The security: a new one replaces the old one, from which the surety may return a portion to you: the returned surety.
From the offer to the settlement of the old loan
- Délai de réflexion de l'emprunteur 10 jours
- Maintien minimal des conditions de l'offre 30 jours
Le délai court à compter de la réception de l'offre. L'accepter plus tôt n'accélère rien : l'acceptation ne peut intervenir qu'une fois ce délai écoulé.
- En vigueur depuis le
- Source
- Article L. 313-34 du code de la consommation — Légifrance
With the offer in hand, request the early repayment statement, dated realistically, including the notice period. Check the penalty: the lower of the two caps applies.
Calculé sur le capital remboursé, au taux moyen du prêt.
- En vigueur depuis le
- Source
- Article R. 313-25 du code de la consommation — Légifrance
Calculé sur le capital restant dû avant le remboursement. Votre contrat peut prévoir moins, jamais plus.
- En vigueur depuis le
- Source
- Article R. 313-25 du code de la consommation — Légifrance
The cases with no penalty: the early repayment. The new bank settles the old one directly. Keep the loan settlement certificate for the resale.
Who controls the timeline
| Step | Who controls the timeline | What lengthens it |
|---|---|---|
| Gathering the documents | You | A missing original offer, forgotten amendments |
| Assessment and agreement | The new bank | A file submitted in several instalments |
| Insurance | The insurer | Medical examinations, a questionnaire to complete |
| Guarantee | The guarantee body or the notary | A mortgage registration, which takes longer than a guarantee |
| Offer, reflection, acceptance | The law | Nothing: this period cannot be shortened |
| Settlement and balance | The old bank | A contractual notice period, a settlement to redo |
Your lever: a complete file from the first submission.
The pitfalls that cause a buyout to fail
- A changed situation since the purchase.
- The insurance, if your health has changed. Sometimes, changing only the insurance is sufficient: the procedure.
- A mortgage, paid at entry and at exit: the release.
- The counterparty obligations (account domiciliation, savings): quantify them before signing.
- A subsidised loan: only the main loan is taken over.
How long does a buyout take, from submission to settlement?
The time for a new loan, plus the settlement of the old one. The only fixed period is legal: the reflection on the offer. The rest depends on the completeness of the file, the insurance and the guarantee.
- Before submission: gather the documents and request from your bank the indicative settlement for early repayment. It must provide you with the necessary quantified information free of charge (Consumer Code, Article L. 313-47).
- During the assessment: initiate the insurance and the guarantee at the same time as the application, not after the agreement.
- After the offer: the reflection period runs, then the acceptance, then the disbursement on the date of the settlement.
- With a mortgage: the notary intervenes for the new guarantee and for the release of the old one; schedule their appointment as soon as the agreement is reached. The details: the release, cost and timeline.
After signing: closing the file
Cancel the previous insurance if it was not group insurance, claim the deposit or verify the release of the guarantee, and keep the old account for the duration of one direct debit cycle.
Have your buyback prepared
As a mandated agent of a banking operations intermediary, I read your original loan offer, I calculate the exit, I compile a complete file in a single submission and I align the settlement with the release. The lender decides; no funds pass through me. The fees.
Do you have your amortisation schedule at hand? Create your file or have your loan assessed by telephone.
Sources
- Légifrance — Article L. 313-1 du code de la consommation
- Article L. 313-47 du code de la consommation — Légifrance
- Article R. 313-25 du code de la consommation — Légifrance
- Article L. 313-34 du code de la consommation — Légifrance
- Article L. 313-39 du code de la consommation — Légifrance
- abe-infoservice.fr
Read next
- Mortgage rates in Lyon: current rates by loan term
- Renegotiating your mortgage or having it refinanced: the calculation that tells you whether it is worthwhile Renegotiating or refinancing your mortgage is only worthwhile if the interest saved exceeds all costs. The method in six lines, and when to abstain.
- 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.
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