The Banque de France does not want to “push the French into over-indebtedness”, reacted its governor François Villeroy de Galhau on Friday, after the Minister of the Economy said Thursday that he wanted to discuss adjustments to the current mortgage conditions.
Bruno Le Maire must meet during the day with Mr. Villeroy de Galhau, at a time when the rise in interest rates is weighing on the real estate market by restricting the conditions for access to credit.
Possible derogations from the rules according to which banks can only lend provided that the cost ratio, i.e. the total amount of housing-related expenses in relation to income, will be mentioned. does not exceed 35%, and for a maximum of 25 years (or 27 years in the event of work prior to moving in).
They can do so for 20% of the credits, provided that these derogations mainly relate to the acquisition of a principal residence and aim in a third of cases to support first-time buyers. Everything in its time reacted the governor on Friday at the microphone of Radio Classique, recalling that the decision belonged to the High Council for Financial Stability (HCSF) which meets in June.
Real estate rates still considered low in France
There is one thing certain and that is that we are not going to push the French people into over-indebtedness, because the real social crisis would be there, he continued. On the rate of wear, a maximum rate designed to protect borrowers but accused of preventing banks from lending, the governor said that this explains why the mortgage rate is lower in France than in neighboring countries, without commenting on a more significant change in the rules.
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The wear rate has been relaxed, recalculated every month instead of once a quarter. But Bruno Le Maire said that the authorities would study the possibility of extending this system, supposed to end in July.
On Livret A, the governor also said that in July he would make a recommendation to the minister on the rate of return, taking into account the interests of savers and borrowers. Wednesday on France Info, Mr. Le Maire had affirmed that his first responsibility is to protect the savings of the French, suggesting the wish to see this rate increase.
Booklet A: Why is it not possible to increase the rate on August 1st?
The Governor of the Banque de France and the Minister of the Economy have the possibility of deviating from the calculation rule, determined by taking into account the rise in prices and interbank rates, at which banks exchange short-term money .
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