Buy Back Senior Credit: All Information

Are you going on retirement or are you in early retirement? This situation is often synonymous with a decrease in the level of income. In order to maintain certain financial stability, it is possible to take out a senior credit buyout.

Buy back senior credit: for what purpose?

When you go into retirement or early retirement, this generally causes an average income drop of 30%. Seniors therefore see their purchasing power reduced. Also, many seniors are unable to maintain their quality of life once they are retired.

A repurchase of senior credit is a restructuring of debt allowing the seniors to regain their purchasing power or to anticipate their retirement and the loss of income implied by this one. 
A repurchase of credit for senior therefore offers the possibility of maintaining the balance between their repayment charges and the income they receive.

A senior credit buyout can also allow the senior to finance a new project or to save savings.

Senior credit repurchase: the specifics

The repurchase credit for senior is to be differentiated from the other credits because of the flexibility concerning the age of subscription and the borrower, the age of end of credit and the various options being proposed.

A credit end at 85 and over

A financial institution makes a purchase of all loans in progress and the senior contracts with him a new loan. A loan buy-back offers the possibility of a lower monthly payment than for the initial loans. For this, the duration of the loan is extended. A senior credit buyback is intended to be specific with regard to the subscription age limit and the coverage age limit. It allows people over 60 to take out loans of up to 25 years, with a possible end of credit of 85 years or more. The duration of the loan is calculated according to the retirement or early retirement pension received by the senior. The objective of the repurchase of senior loan is to find a good debt ratio.

Specific options for buying back senior loans

The senior loan buy-back can be offered with the following options:

  • Decreasing reimbursement: the amount of the monthly payment decreases as of retirement.
  • Maturities can be adjusted up or down
  • The purchase of insurance adapted to seniors so that they protect themselves and their loved ones.

Redemption senior loan: advantages and disadvantages


  • Single interest rate for any redemption of several loans
  • Increase in purchasing power
  • Possibility of having cash
  • Allows a financial balance


The loan repurchase has a cost that should not be overlooked due to the increase in the overall cost of the loan (extension of the repayment period) and the invoicing of fees for the repurchase transaction. 
In the event of the borrower’s death, relatives may have to repay the loan if he has not taken out insurance.