While mortgage rates continue their inexorable rise, two banks have decided to temporarily halt the production of loans. In question according to them, the rate of wear fixed 2.40% until July 1st.
In June, once again, mortgage rates are on the rise, 1.37% over 15 years, 1.47% over 20 years and 1.63% over 25 years, according to figures from Meilleurtaux at the start of the month. month of June. The problem is that despite this increase, banks fail to make production profitable real estate loan. The interest rate on 10-year French government bonds (OAT), an important indicator for banks, is now 1.64%, while inflation over 12 months in France is 5.2% in May.
Real estate credit: despite the goodwill of some banks, rates continue to climb
Consequence: Some banks have completely exited the market because with the wear rate (the maximum rate at which an establishment is entitled to make a credit note), they can no longer lend. They therefore stop the time to see more clearly, explains Pierre Chapon, co-founder of the broker Pretto.
Other banks ready to follow?
According to’Agefi AssetsSocit Gnrale and Credit du Nord have made it known that they would not accept any more files for the moment from brokers. information confirms Moneyvox by a player in the sector. According to the same source, these banks have for the moment stopped accepting files from brokers so as not to pay commissions in order to generate a little more margin.
The two brands therefore continue to offer direct credits, while offering the maximum rates anyway, even if it means being less competitive. An announcement that looks like a pure and simple stoppage of productionsince a borrower who goes around the banks will probably be offered a lower rate elsewhere.
For the moment there are only two signs that are indented, but this shows that the wear rate can become a real brake on credit, notes Sandrine Allonier, spokesperson for Vousfinancer. Other banks have decided to increase their fees file since last month. It must be understood that banks must, in the current context, find sources of profitability.
The situation is likely to be very complicated until the fall
Between tightening of the belt and fear of seeing a fall in the production of credits, all the players in the sector are now turn around July 1st, date on which the wear rate must be updated. Unfortunately, I think the wear rate will only go up by 0.10 or 0.15%, fears Sandrine Allonier. this will not solve the problem.
With current wear rates, the situation is likely to be very complicated until the fall. While last year, the profiles most affected by the wear rate were the most fragile, with a health problem or advanced age due to the insurance rate, even classic profiles are now excluded from credit . Borrowers who could have borrowed without problems 6 months ago, theoretically can no longer do so! Fortunately there are solutionslike trying to negotiate the credit rate, administrative fees, playing on insurance coverage, but they are not sustainable over time, explains Julie Bachet, general manager of Vousfinancer.
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For several weeks, brokers, banks and real estate professionals have been campaigning for a change in the method of calculating the wear rate. The Minister of the Economy said he was listening to the problem: We work on quick fixes to take into account the impact of the rise in rates on the wear rate (…), to find a balance between consumer protection and access to property, it is known in the entourage of Bruno Le Maire.
Real estate loan: find the best rate