Banks stormed before rising real estate loans

Since mortgage lending rates are rising again, more and more individuals are getting into debt or renegotiating a loan. Fed up, the banks are, they, always more restrictive.

The movement, perceptible for several months is accelerating. Banks are increasingly attacked by individuals wishing to renegotiate their loan or buy one, before the movement of higher mortgage rates increases. In recent weeks, the majority of large networks have raised their rates from 0.01% to 0.35% on average (2.10% over 15 years excluding insurance for a good record and 2.35% over 20 years) , in the wake of the rise in the 10-year French government bond rate, which is used as a reference for fixed-rate. LCL has even done it twice since May (0.10% then 0.15% in June). Only the Banque Postale and some regional banks of large institutions escape the rule. But for how long? In the general opinion, the rise in mortgage rates should actually continue beyond the summer.

Anticipating this movement, “individuals who had been considering for a while to renegotiate a loan subscribed two or three years ago are rushing into their bank today,” says Sandrine Allonier, bank relations manager at Others, a little less numerous, take advantage of the situation to realize a real estate purchase project. As a result, the time to get a loan is getting longer. To mitigate the problem, some notaries now include 60-day suspensive clauses in the pre-contracts. At the same time, some customers have been waiting for several months (sometimes six months) for their loan to be renegotiated (or bought back) by the bank. This can be a problem because the operation will not always be concluded at the rate indicated at the first appointment.

Some banks no longer accept credit redemptions

For professionals, the demand should not really weaken during the summer, which the bankers fear. They are struggling to manage the situation and are organizing more and more to limit their offer. “Certainly, in some institutions, the best customers still get loans over 20 years to less than 2%, but this will become increasingly rare. Given the volume of applications they receive, banks are increasingly demanding on the quality of the files, “notes Sandrine Allonier. They deal primarily with credit applications, to the detriment of redemptions and renegotiations.

Some institutions are no longer willing to renegotiate or buy back credits. Very selective, others only lend to households earning more than 40,000 euros a year, and some of them only finance loans exceeding 200,000 euros. Finally, some banks do not take punctually the files sent by the brokers.