The lights are green, this is what emerges from the latest study published by the Francia Bank regarding the distribution of credit in France last November. Loan real estate or consumer, the 2 sectors are particularly dynamic. The Credither guide details the housing figures.
Production of real estate loans up 4.1%
Let’s start with the raw results. Outstanding home loans in November amounted to 891 billion euros (out of a total of 1,086 billion euros). In terms of variations, this represents an annual increase of 4.1%, a figure slightly up (+ 3.9% in September, + 4.0% in October).
“New” home loans also posted positive results: 27.5 billion euros in November, against 24.8 billion a month earlier (19.6 billion euros in June 2016).
Low real estate rates
It has been repeated for several months in our analyzes of real estate rates, these have never been so low. ” These favorable conditions push the production of new loans to housing on the rise […], and more particularly renegotiations, ” confirms the Francia bank.
With a fixed average rate of 1.56% in November, it would be a shame for borrowers to show a wait-and-see attitude. This same rate was:
1.85% in June 2016;
1.78% in July;
1.72% in August;
1.68% in September;
1.60% in October.
Small flat: given the latest trends in real estate rates ( 1.65% over 20 years in January 2017 ), the rates of the Francia Bank should start up again. In the meantime, do not worry: the bank rates will certainly go up in 2017 but should continue to maintain very attractive levels.
Large share of mortgage repurchases in housing loans
” Favorable conditions […] that lead to renegotiation”. Renegotiation? This operation, also known as a mortgage repurchase, consists in buying back its mortgage to benefit from more advantageous conditions. In this period of advantageous rates, we understand the challenge for borrowers already owners: renegotiate or redeem his mortgage to benefit from current lending rates, extremely low.
And the figures of the Francia bank do not deceive. In November 2016, renegotiations accounted for most of the newly subscribed home loans (58.8%) against:
– 54% in October;
– 51.6% in September;
– 49.9% in August;
– 43.9% in July;
– 38.1% in June.
Think about the delegation of mortgage insurance
Under the impetus of historically low interest rates, the housing credit market continues to grow. However, despite their low level, interest rates should not be the only point of attachment for future borrowers. Different parameters must be taken into account, including mortgage insurance.
Since the introduction of the Lagarde (2010) and Hamon (2014) laws, borrowers are no longer forced to accept their bank’s insurance offer (called group insurance). When negotiating their mortgage, they can compare and choose an external borrower insurance, provided that the guarantees are identical. This operation is called insurance delegation. It allows you to benefit from personalized credit insurance rates, possibly lower than those offered by your bank.
In 2014, the deadline for comparing insurance offers was extended. Borrowers have up to 1 year after signing their home loan to change insurance. Moreover, for borrowers wishing to change insurance, our comparator mortgage insurance allows them to compete with insurers.
At the end of 2016, members wanted to go even further. As part of the Sapin II law, they had indeed voted the possibility of terminating the mortgage insurance on each anniversary date of the contract (as for auto or home insurance). The Constitutional Council then censored this provision, considering that it had no place in a package of measures aimed primarily at fighting corruption. But it is not excluded that this reform will return to the front of the scene in the coming months…