Almost one in two mortgage applications (45%) have been refused since January 1, 2022, according to a survey carried out on behalf of Afib (French association of bancassurance intermediaries), reports France Info.
In question, the rate of wear, that is to say the maximum legal interest rate that credit institutions are authorized to practice.
It has been set since July 1, 2022 at 2.57% for loans of 20 years and over.
Banks are prohibited from lending above this rate, which effectively excludes many households from mortgage loans.
The mechanism is supposed to protect the consumer, "but the problem is that this rate does not rise quickly enough compared to the rise in rates", explains Jérôme Cusanno, president of the association.
According to the survey, more than half of these refusals of mortgages concern 30-55 year olds (51%), “i.e. the wealthiest asset segment”, adds the president.
Several options
This primarily concerns loans related to purchases of principal residences (71%).
"Sales in old and new real estate are already affected," warns Jérôme Cusanno, with a potential impact on construction and the construction sector, France's largest employer.
Notary fees and transfer duties could also be affected.
The State would no longer collect these sums, which would block the entire system.
According to Afib, several solutions exist to "de-sclerosis" the situation, such as changing the method of calculating the wear rate which until then is an average of the previous quarter, increased by a third.
Afib proposes to increase it by two thirds.
The Banque de France could also increase the wear rate for a month or permanently put borrower insurance outside the APR (annual effective rate).
Because, currently, borrowing rates have risen to around 2%, whereas the last five years have been on a downward trend.
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