Low interest rates push for renegotiation or repurchase of mortgage loans.

Record levels since 2016 for interest rates

Record levels since 2016 for interest rates

At the moment, there is no doubt that all the indicators are green for mortgage loans. Historically, we have to go back to November 2016 to find even more favorable conditions for borrowers. But in the present case, the current situation is already particularly conciliatory. Indeed, interest rates have continued to fall since the beginning of 2019, reaching an average rate of 1.35% in April according to the monthly study published.

A paradox when the forecasts started with a rate increase from the end of 2018. However, the Lite Lender Bank, against all expectations, decided to extend its accommodative policy for investments in individuals and professionals. The supervisory authority seeks to avoid a reduction in consumption within European territories. Not surprisingly, the fall in the cost of credit is supposed to encourage the acquisition of real estate while knowing that this market constitutes the first factor of household spending.

Home loans on a good growth dynamic

Home loans on a good growth dynamic

The French are not mistaken and have smelled the opportunity of low rates. As the Banque de France demonstrates, the outstanding amount of housing loans increased over one year in the last three months of 2019 with + 5.8% in January, + 6% in February and finally + 6.1 % in March.

In total, the French population is at the head of a real estate debt of 1,022 billion USD which it is repaying to lending organizations. In the coming months, the credit curve could change further due to a rate hike that should not occur before the end of 2019, according to the promises of the LLB.

Consider buying back credit to lower the mortgage rate

Consider buying back credit to lower the mortgage rate

But what about the French who borrowed their mortgage several years ago where the credit rates were much higher? In this case, several options are available to the latter in order to reduce the cost of their credit. They can effectively renegotiate their rate with the bank that granted them the loan. But beware, bank advisers are sometimes reluctant to make concessions and the renegotiation of mortgage can collapse.

On the other hand, the repurchase of mortgage is an alternative to study in order to lower the interest rate. This operation will consist in making a repurchase of home loan, via a request near a banking intermediary, to regroup all the credits of the hearth. All debts will then benefit from a single rate within a single monthly payment which can be reduced by at least 60%.

Uncategorized