From this Friday, July 1, the mortgage market will take a breather.
But not the breath of fresh air hoped for by the professionals.
The usury rate – i.e. the maximum rate at which a bank can lend to an individual – will be raised “by around 15 to 20 basis points, depending on the duration”, from July 1, announces the Banque de France to Parisian - Today in France.
Concretely, this rate will increase from 2.40% to 2.55% or even 2.60% for loans with a duration of 20 years and more, the most commonly granted.
For loans of 10 to 20 years, the ceiling will be 2.58% or 2.63% (against 2.43% today).
Calculated by the financial institution each quarter, this ceiling rate is supposed to reflect the average of the interest rates observed over the previous three months.
It includes all the costs related to the credit: the interest rate, of course, but also the borrower's insurance, the guarantee costs (deposit, mortgage) and file.
This increase is therefore logical in this period of soaring interest rates.
They averaged 1.06% in December 2021 compared to 1.38% in May, before insurance.
“This legislation of the maximum rate is made to avoid excessive borrowing rates, and therefore protect borrowers, we support the Banque de France.
Brokers and representatives of lenders have recently spoken out in favor of the invocation of exceptional circumstances, allowing it to be pushed back further to July 1.
At this stage, however, we do not see any measurable crowding-out effect (loan
) associated with these ceiling rates.
Banks and brokers dissatisfied
The professionals have indeed pleaded their case with the Minister of the Economy, Bruno Le Maire, so that he operates a major increase, and a change in the method of calculation, unsuitable according to them.
Some even hoped that it would be increased to 3%.
A possibility swept away by Bercy in agreement with the Banque de France, after consulting the entire sector in recent days.
Banks and brokers believe the current maximum rate is too low to allow the greatest number of people to borrow, especially first-time buyers.
“This decision is very disappointing and is not up to the challenges, laments Olivier Lendrevie, president of the broker Cafpi.
From July 1, banks plan to raise their interest rates by 0.30%.
“Only wealthy people with a lot of cash will be able to become owners,” agrees Maël Bernier, spokesperson for Meilleurtaux, already noting “a slowdown in the volume of loans granted by banks”.
Several banking networks are already restricting the granting of credit, including Société Générale and its subsidiary Crédit du Nord, HSBC and BNP Paribas, which do without brokers.
“The device must not become a mechanism for excluding households from financing their solvent projects”, we argue at the French Banking Federation (FBF), which considers the new maximum rate “insufficient”.
"We have had no escalations, or very few, refusals of credit due to the rate of wear"
For its part, the Banque de France has not observed an erosion of loan production.
“It remains historically very high and is increasing by more than 6.5% on an annual basis, suggesting the absence of rationing, we say to the institution.
We also note that, on the side of borrowers and families, the associations did not comment on a possible crowding out effect.
In fact, the Banque de France considered it "fair" to keep the "normal method of calculation" for this quarter.
“We have had no reports, or very few, refusal of credit because of the wear rate, confirms Matthieu Robin, project manager at UFC – Que Choisir.
We are very surprised by the discourse given by market professionals.
Brokers remain entrenched in their positions.
“These are not the figures we see on the ground, gets annoyed Olivier Lendrevie.
The credit market has been slowing down very sharply for two months.
The Banque de France will see it in its figures during the summer.