In times of crisis, borrowers may not have the means to fulfill of their monthly payments. With the coronavirus crisis, many have seen the activities of their businesses decline, know the Partial unemployment when they just aren't put in place technical unemployment. For those who thus find themselves in delicate situations, the question arises as to whether it is possible to suspend or to differ the refund of real estate credit. We take stock.
The authorities took a number of measures from the start of the crisis to sustain the companies in difficulty as well as employees. Among these is the maintenance of the wages for those who put themselves in sick leave to look after children or who are in Partial unemployment. For these people, whose standard of living remains approximately the same as in normal times, nothing, a priori, would justify a suspension of the refund of real estate credit.
The question arises, however, for people who have experienced a drop in activity or income. In principle, these borrowers were supposed to be entitled to debt relief. charges of their credit. The measure is well-founded but its implementation is not simple. The suspension of payment of the monthly payments involves a bank designing a new amortization table for each borrower. However, this process can take time due to constraints linked to the pandemic. In other words, the situation of crisis current has for consequence of the lengthening of the time limit of treatments of the files.
The suspension of deadlines is planned for certain credits. However, the duration of this suspension varies from one bank to another. It is thus possible to defer one to twelve monthly payments depending on the establishment. Please note that this report can be done once or several times. Even though a borrower would benefit from a suspension of the deadlines, he must always fulfill of insurance loan. It is also important to note that the postponement of refund credit generates of the interests.
To get an idea of the “additional cost” generated by a suspension of deadlines, let’s take the example of a credit of €200,000, obtained at a rate of 1.5% two years ago, and repayable over twenty years. If the bank grants the deferral of three monthly payments of €965 each, the duration of refund of credit gets longer four months. Finally, the borrower will pay a additional cost of €1,000.
But the banks obviously do not grant the postponement of monthly payments to everybody. For people who do not have access to this offer, there is also the modulation of deadlines, that most of establishments integrate into their policy. With this offer, the borrower is entitled to a decrease from 10 to 30% of its monthly payments.
