Since January 2018, it has been possible to renegotiate the insurance guaranteeing a mortgage at any time.
This is a major step forward in consumer rights, as previously this option was only available during the first year.
We explain how to renegotiate your mortgage insurance and obtain an optimized budget to buy a house in Morbihan.
Why renegotiate your mortgage insurance?
When buying a house, the loan guarantee represents a significant portion of the budget. Having the opportunity to renegotiate your mortgage insurance allows you to save on monthly payments while obtaining a personalized contract better suited to your situation, unlike the group policies offered by financial institutions.
Conditions for renegotiating your mortgage insurance
In order to carry out an insurance delegation—that is, to take out a policy outside of the one offered by the bank—you must find a contract that provides the same level of coverage for the same risks.
You must send the insurance termination notice by registered mail with acknowledgment of receipt, along with the general terms and conditions of the new guarantee, two months before the contract’s anniversary date. Otherwise, the lending institution has the right to refuse the change, which could impact your ability to buy a house.
Buying a house under the best conditions
Given that it is now possible to renegotiate not only the loan itself but also the insurance policy guaranteeing it, savings can be made on the overall financing cost, potentially allowing for the purchase of a larger house. It is therefore important to carefully consider your financing plan.
Are you planning to move and buy a house? BPS is your preferred partner in the region.
Find out more:
How to finance the purchase of a second home?
