Good news for some, but bad news for others. For several weeks, thousands of home loans have been refused and it is increasingly complicated for customers to be able to obtain property.
The usury rate, originally there to protect consumers from too high rates and limit over-indebtedness, eventually became a barrier for those wishing to borrow. This rate corresponds to the maximum level that banks can set when granting a loan, including the base interest rate, administration fees, any commissions as well as the cost of borrower insurance and mandatory guarantees.
Until now, the usury rate was thus set at 2.57% for loans with a duration of more than 20 years and at 2.60% for those extending over a shorter period. Thus, no bank could then grant a loan with a rate higher than these. However, the Banque de France has announced a historic increase in usury rates which will increase, from October 1, to 3.05% for mortgages over and 20 years old and to 3.03% for those under 20 year.
For several months, brokers have been alerting the Banque de France to the risk posed by the wear rate on access to property, reports Les Echos. A demonstration was even organized in front of the doors of the Banque de France last week. The disgruntled brokers were then received by Governor François Villeroy de Galhau who assured that the institution had not observed any drop in mortgage loans.
In response to the change in the method of calculation requested by professionals, the Banque de France, if it increased the rate of wear, specified in its press release that the method of calculation will not change. “An exceptional increase in usury rates – the role of which is to protect borrowers – is neither desirable nor necessary,” it reads.
This announcement nevertheless made many brokers smile, even if they believe that the positive effects will be limited. “Credit rates should not go up in the coming weeks, otherwise the benefit of the increase in usury rates will be canceled and the situation will be the same again as last summer”, explains Sandrine Allonier, portfolio manager. word of the broker Vousfinancer, with BFMTV. What concretely does this change for you?
This decision will undoubtedly have positive effects for many French people. Indeed, a number of consumers were unable to obtain a mortgage due to the level of the wear rate. With its increase, these situations will be unblocked and customers will thus be able to access the property.
However, the rise in the wear rate could also lead to movement across the market. “Those who demand an additional increase in the rate of wear and tear are those who want to be able to lend more to the French” estimated François Villeroy de Galhau in an interview with Ouest-France at the end of August.