Credit buyback: interest rates are as attractive as two years ago
Mortgage interest rates granted to individuals are returning to their October 2016 levels, according to banking intermediary networks. This favors real estate purchases and real estate loan buyback projects.
Interest rates: the autumn 2016 records were reached
To date, it is possible to obtain an interest rate (excluding insurance and unsecured) of 1.40% over 15 years, 1.60% over 20 years and 1.85% over 25 years, according to the figures. from banking intermediary networks. However, looking closely at the evolution of the scales over a few years, it is clear that the average cost of credit returns to their October 2016 levels. In other words, the current average rates correspond to the records of the autumn. 2016.
Thus, despite some fluctuations, the scales, in just two years, have returned to their historically low level. According to some observers, they should remain attractive until the end of the year, but it should not necessarily see the installation of a downward trend as in the last months of 2016.
With margins tightening more and more, it will be very difficult for banks to go even lower, even if the competition is particularly strong between banks. In addition, most lenders are getting closer to their business goals, so they should be looking to improve their market share at any price.
Low rates boost the real estate market
Prices per square meter are increasing everywhere in France. But whatever! As long as the cost of credit is attractive, you have to take advantage of it. This is at least the logic of the majority of French people who are always rushing on real estate. According to a recent study, more than 60% of French people consider the period globally favorable to the property acquisition project.
This judgment is mainly favored by the very cheap credit offered by banks. Namely that the consequences of the steady decline in rates can increase the demand for financing and boost the stone market, especially in medium-sized cities where prices have risen considerably in recent months.
Most households, with the exception of those listed, can now claim a mortgage including households without personal contribution. Now, you have to earn about 3000 euros to borrow 200 000 euros, in 2008, you had to win 4 000 euros to borrow the same amount. In other words, for the same capital borrowed, the necessary income fell by more than 30%. This trend is revitalizing the tricolor real estate market.
What about the redemption of mortgage
If the period is appropriate to mortgage real estate, you should know that the climate is also good for the operations of repurchase of the mortgage. In recent weeks, major banking intermediary networks have seen a considerable increase in home loan repurchase and renegotiation requests.
However, these are mainly contracts signed in 2015 and the substantial gain can reach several thousand euros provided that certain criteria are met. As a reminder, the rules to be followed are as follows: to be in the first third of his loan agreement, to have a capital remaining due, to have a difference of about one basis point between the initial rate of his credit and that proposed for the operation.