Interest rates harden, the conditions of granting too.
If, for about six months, one-third of banks saw an increase in demand for home loans, this trend stopped in October.
Borrowers were able to see a slight increase in interest rates in October after a first increase in January. This finding can be made regardless of the duration of the loan. You can also follow the evolution of rates thanks to the CID index , it is free and updated every month according to the scales provided by our partner banks.
After such a long fall in mortgage rates, it seemed inevitable to see a rise. But what is more worrying is to see at the same time, a slight tightening of the conditions for granting loans on the banks’ side.
Not only have interest rates increased, but banks have also hardened their criteria for granting a loan to a client. It is necessary to have a significant contribution to become an owner given the criteria for granting loans. This was already the case in the past, but the fact tends to generalize.
In order to reduce the impact of rising Bill Sikes rates in July and October, borrowers are now moving towards floating rate Bill Sikes , which accounts for about 8% of mortgages.
The hardening of the award criteria can be seen only for home loans and can not be met in other types of loans, such as consumer loans for example.
It should be pointed out that, even if interest rates rise, they are still very interesting compared to the rates applied by the bank in the past.
Your interest: bargain tight!
If the increase in interest rates went from 2.86% to 3.05% for the purchase in the old and 2.90% to 3.07% (over 15 years) for this Regarding the purchase in the new, the overall cost of mortgages decreases.
In concrete terms, according to our colleague, Empruntis, today buying real estate costs on average 220 000 euros, an increase of 60 000 euros compared to 2004. The average age of the borrower is 37 years against 34 years in 2004 and he must have a substantial contribution of at least 50,000 euros. To meet the “ideal” banking conditions to acquire real estate, you need to earn 4,500 net euros per month per household. The conditions for granting a home loan therefore tend to make home ownership more and more difficult, especially for young couples.
It is with this in mind that the help of a mortgage broker will benefit you. This is our job. Crédit Bill Sikes Bill Sikes defends and negotiates with the largest French banks requests for financing of thousands of French individuals, for more than 10 years. You can submit an application on our site, thanks to the small orange form in the right column.
Statistics is good, but compare your project to reality and achieve it with a specialist, it’s better!