Indeed, the maximum age for the repurchase of credit is established directly by the lender in complete freedom according to its reference grid. However, the banks agree on a theoretical age according to the profiles. Are of course concerned the retirees seeking to contract a repurchase of credits.
The age limit for obtaining a loan repurchase therefore varies from one establishment to another, hence the advantage of making a comparison of current market offers.
Note, however, that the main criterion for setting the age limit for the repurchase of credit is the duration of the repayment deadlines. So, can I buy back credit until age 75? 80 years old? 90 years? Here are the different cases.
Credit repurchase: up to what age is this possible?
To determine the limit not to be exceeded for the senior borrower, it is necessary to study the duration of the repurchase of credit. More specifically, it is a question of looking at the date of the last repayment deadline.
Thus, for a repurchase of consumer credit, it must take place before the date of the 84th anniversary, to which six months are added. For a home loan repurchase or a mortgage loan, the last repayment deadline must occur before the 90th birthday of the subscriber.
An alternative exists for people whose last repayment deadline would reach 95 years maximum. It is a specific offer assimilated to a Project offer, which allows the release of cash in order to finance the preparation of an estate or even access to housing in a retirement home. This offer requires the agreement and information of the beneficiaries.
Age of credit repurchase: tenants worse off than owners
When borrowing, the lending institution seeks guarantees that it will be fully repaid.
Age is therefore an important criterion, the risk of death being the minimum coverage required.
Other guarantees may be included in the loan insurance backed by a credit repurchase such as disability insurance or loss of employment insurance. The latter notably allow the lending bank to cover itself in the event of a fall in income linked to the consequences of an accident in life, an illness or a period of unemployment.
As seen above, the owner of a property can opt for a credit buyout up to 95 years, in the sense that his loan end must occur at the maximum age of 95 years.
What about tenants? A tenant presents a riskier profile for a lender. Not being the owner of his home, his heritage is generally less than that of an owner. Institutions that make a loan consolidation offer are therefore more cautious and limit the age for the end of repayment of the loan consolidation to 84 years.
An increasing age limit for the repurchase of credit
The age set by lenders tends to increase. Why? Because they take into account the lengthening of the lifespan. While at the beginning of the 1970s, the life expectancy of a Frenchman was 72 years, it is now estimated on average at 83 years, women ahead of men by a few years.
Technical and technological progress in terms of lifestyle, risk prevention, detection of pathologies and care provided favor this progression. However, banking establishments record this data to adapt their offers.
We can therefore project that in the coming years the age limit for the repurchase of credit will increase, provided that life expectancy continues its trajectory.
This phenomenon can also be associated with the lengthening of retirement. Indeed, the transition to retirement constitutes a step for the lending organizations. The higher the retirement age, the more the active borrowers keep cash inflows.
This observation plays favorably on another very important criterion: borrowing capacity.
Credit repurchase for seniors: borrowing capacity and state of health
Obviously, a bank will lend more easily to a person or a household with high incomes (as we have seen for the maximum age of a credit consolidation between owners and tenants!).
Seniors, if they maintain cash inflows, display an interesting profile when presenting a credit consolidation file. They may have practically completed the repayment of their mortgage, have assets or no longer have dependent children. Their borrowing capacity is enlarged.
All these advantages which encourage lending organizations to formulate an offer which will allow them to have only one installment to pay, at a more favorable borrowing rate, even if the borrowing duration is extended.
Also remember that the borrowing rate for retired seniors is roughly the same as that offered to a borrower aged 40.
On the other hand, the subscriber of a repurchase of credit of more than 65 years will have to be attentive to the insurance of loan which is associated. It is the amount of this premium that raises the overall cost of the credit consolidation. It is not so much the age which is discriminating but the state of health.
Generally, after 55 years, a medical questionnaire and further examinations if necessary are required. To minimize the impact of an additional premium, the senior should not hesitate to activate the lever of competition by taking advantage of the right to delegate insurance allowing him to initial an individual borrower insurance more suited to his profile.