Retroactivity of the annual cancellation of the loan insurance,
The Constitutional Council will decide on January 12 about the extension of the annual cancellation of the credit insurance to all the contracts prior to February 22, 2017.
A definitive answer expected on January 12, 2018
The project was long desired but arrived at the beginning of last year. In addition to the possible insurance delegation during the first 12 months, the annual cancellation supplemented this provision. On each anniversary date of their contract, borrowers now have the option to change their loan insurance. Until 31 December 2017, this measure was restricted to contracts concluded after 22 February 2017. However, since 1 January 2018, it extends to all contracts.
If the news can delight thousands of real estate borrowers, the celebrations are not yet relevant. Indeed, the banks are standing up against the retroactivity of the annual termination and have seized the Constitutional Council. The Conseil des Sages must comment on the validity of the extension of the annual cancellation to all mortgages subscribed before February 22, 2017. The guarantors of the respect of the Constitution of 1958 will return their answer on January 12th. Pending this decision, the termination is therefore deemed to apply to all home loan insurance contracts. But in fact, who are the borrowers involved?
Will the old mortgages be affected?
Firstly, real estate loans concluded after February 22, 2017 benefit from the annual cancellation. For contracts awarded before this date, the referral to the Constitutional Council does not change anything for the moment. Holders can therefore turn to their bank to benefit from the annual cancellation. However, it is necessary to take into account, the notice period set at 2 months. That is to say, for a contract concluded on January 2, 2016, the borrowers should have notified their bank before November 2. Currently, borrowers who have a credit with a birthday in March are affected.
Two hypotheses are thus theirs because the response time of banks will surely occur after the opinion of the Constitutional Council. If it confirms the retroactivity of loan insurance, borrowers will benefit. On the other hand, if this measure is declared unconstitutional, their request for delegation can not succeed. Contract holders will only lose the cost of the price of their registered mail. Considering the savings achievable (several thousand euros), the approach is not in vain.