Group loans, Or what is the same, unify credits, consists of grouping all the loans and mortgages that we have in a single loan. In this way, you will only have to face the payment of a single monthly installment, with the advantage that the sum of the amount to be paid will be less than all those that you had to face previously.
In other words, you can gather your debts into one to reduce considerably the monthly payment to pay, of course, at the cost of increasing the repayment term and, therefore, the final cost of the operation due to interest. Discover all the details below!
How to unify credits into one?
To face the payment of your debts, you can request the management of one of the many specialized companies, called mediators, which will allow you to group loans and mortgages with different banks and even with different interest rates.
You can too unify credits Through a bank, preferably where you have the majority of unfinished loans or mortgages. But, first of all, the ideal is that you consult what are the best debt reunification companies to carry out the process, its expenses, requirements, advantages, disadvantages, etc.
In general, the procedure for grouping loans is not particularly complicated, but it requires the study of each particular case by the mediating company. This company will analyze your debts, the interest you are paying and the repayment terms that you have ahead. Thus, once the operation is approved, they will begin to negotiate with the different banking entities the news regarding the payment conditions.
When the process has begun, all your loans and mortgages will be canceled to reunify them in a single payment with the new conditions previously negotiated. But keep in mind that this new mortgage will include all your outstanding debts and will therefore have a new interest rate, as well as a new repayment term that is usually longer to reduce the monthly payment to be paid.
What expenses does it entail grouping loans into just one?
Since unifying credits into one only implies a series of expenses to take into account, you can consult a reunify debts simulator. In addition to the interest cost that we have already mentioned, you will have to face the following expenses:
- The reunification of debts implies the early cancellation of your loans, so it will be usual that you have to pay the usual commissions for cancellation or early repayment.
- In addition, to group loans you must formalize the opening of a new mortgage, which entails taking charge of the expenses of this operation, such as the commission for opening, the Tax on Documented Legal Acts, the costs of appraisal of the home or mortgaged property, or the expenses of the notary’s office.
- If you decide to manage reunification of payments through a mediating agency, it will also charge its own fees. On the other hand, if you reunify the debts through your bank, they usually do not charge commissions for this operation.
Requirements to reunify debts
There are certain conditions that you must meet in order to access the reunification of your debts. For instance, you cannot unify some debts and others not, but you must group all your loans in a single mortgage.
The second requirement is that the amount of this new mortgage must not exceed 80% of the value of the mortgaged property. This will offer an additional guarantee to the entity that grants us the mortgage, although it is normal that they also ask you for the usual requirements that usually apply for the granting of any mortgage: not being included in any list of defaulters, stable and demonstrable monthly income , and offer a guarantor to back you up.
Another point that you should keep in mind is that reunifying your debts will substantially alleviate the monthly cost of your loans, but in the long run it will increase it. So, it is convenient analyze in detail all the costs that you will have to face, as well as the final expense for having prolonged the payment of your loans.
What if we need more funding?
Finally, if instead of unifying existing credits, what you want is to access another one to deal with an unforeseen event, remember to use a simulator to check what installment you would pay in total to find out which one best suits your situation.
Do not forget to consult the best debt reunification companies to clarify all your doubts. And remember that analyzing a reunify debts simulator It can also be of great help before making a hasty decision.
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