Increasingly high mortgage rates encourage refusals of financing. In this context, the broker Vousfinancer, points out that variable or mixed rates are making a comeback. They thus make it possible to pass files without being blocked by the rate of wear.
At the beginning of September, the average real estate rates are rather stable and rise 1.5% over 15 years, 1.75% over 20 years and 1.90% over 25 years, but more and more banks are posting rates above 2% over 20 and 25 years, notes the broker Vousfinancer. However, some have again posted rate increases of 0.10 to 0.20%, with overall increases since the beginning of the year reaching 1 point or more, explains Vousfinancer in its study.
The situation is absurd… These French deprived of real estate loans because of the wear rate
But banks are increasingly blocked by the rate of wear. The maximum rate above which they cannot lend is set at 2.57% for loans of 20 years and over and 2.60% for loans under 20 years. In this context, they are bringing variable rate loans back into fashion. A solution to pass files which, fixed rates, would have been above the usury rate, therefore refused, explains Julie Bachet, general manager of Vousfinancer. According to Vousfinancer, variable rate loan rates are currently lower by 0.40 0.60 points those fixed rates.
How do capped variable rate loans work?
Variable rate credit allows banks to offer real estate credit at an interest rate that will change. There are several variable rate formulas.
–Rates caps one or two points, which may not increase by more than 1 or 2 points but may decrease in the event of a drop in the reference rate, ie Euribor, the short-term money rate practiced between banks in the euro zone. Vousfinancer reports an example of financing obtained with this option: a rate of 1.69% cap 2, over 25 years, (against 2.25% fixed rate) Toulouse for a single first-time buyer with 1400 euros of income, for a loan of 120000euros with 27000euros contribution
save up to 70% on your borrower insurance
–Mixed rates: fixed over 5 to 10 years, then variable caps over the rest of the term of the loan. This system makes it possible to limit the rise in the rate at the start of the loan, when the share of interest is greatest. Advantage: once arrived in the variable part, the good can be resold and the loan refunded in penalties of prepayment, explains Vousfinancer.
The broker reports that a first-time buyer couple with 4,100 euros in income, for a loan of 230,000 euros, with 140,000 euros of contribution, won a rate of 1.43% over 20 years, over 6 years fixed, then variable (compared to 2 % fixed rate).
Real estate credit: this forgotten product that can help you get under the wear rate
These credits had almost completely disappeared with the historically low rates… They represented 0.5% of loans in 2021but they could make their comeback by the end of the year, explains Julie Bachet, managing director of Vousfinancer.
It is therefore a solution for borrowers who are refused financing. But this solution still only concerns a few banks and few files, nuance Vousfinancer.
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