Credit rates are still rising in November, sometimes with +0.50 points in total at some banks in just two months… The rise in usury rates for the month of October, which had brought a breath of fresh air to the market, seems to have no effect anymore. Some borrowers see their loan declined, like this summer.
According to home loan broker Vousfinancer, increases in credit rates averaged 0.30 points in November, following an October marked by a surge in the 10-year government borrowing rate (which serves as the benchmark for rates on loans to individuals) to 3% and the increase in the reference rates of the European Central Bank (ECB), which directly affects the cost of refinancing banks.
“In this context, most banking institutions now publish rates above 2% on all terms and we are even seeing a return of rates to 3% on longer terms. Credit rates that have not been practiced since 2016…”, notes Julie Bachet, general manager of Vousfinancer.
Therefore, the average rate for November is 1.8% over 15 years, 2% over 20 years and 2.20% over 25 years.
The beneficial effect of higher usury rates has already been erased
The benefit of the unprecedented increase in attrition rates, by 0.48 points on maturities of 20 years and beyond in October, was short-lived, canceled out by the successive rate increases applied by some banks between the beginning of October and early November.
“Even faster than expected, in the wake of the rise in usury rates, banks have significantly increased their lending rates, up to 0.55 points in total for some of them since the beginning of October, stresses Sandrine Allonier, spokesperson by Vousfinancer.
Consequence: borrowers excluded from credit
Some borrowers, the elderly or those who do not benefit from the most advantageous credit rates due to the quality of their file, find themselves in the same situation as this summer: excluded from credit, due to the once again too low gap between nominal rates (excl. charges) offered by banks and the usury rate (all charges included).
“Now we theoretically have to wait for 1is January, and a new increase in usury rates to improve the situation, but given the context and the increase in refinancing costs, credit rates will then rise again… How far can this vicious circle go? What is certain is that in terms of borrowing capacity, potential borrowers are already penalized”, observes Sandrine Allonier.
Towards a new method of calculating the usury rate?
Usury rates are thresholds established by the Banque de France (depending on the duration of the credits) beyond which it is forbidden for a bank to lend money.
The objective: to protect borrowers by prohibiting the granting of loans at excessively high interest rates. Their calculation method, shifted by a quarter it is criticized in particular by brokers, because it excludes many potential buyers from borrowing, especially during periods of sharply rising interest rates.
At the end of September, the Banque de France declared that an exceptional increase in usury rates (…) is neither desirable nor necessary. »
Interviewed by BFM Business at the end of October, Olivier Klein, the minister in charge of construction, was more open to confrontation, indicating that he would meet the governor of the Banque de France “to see if the method of calculating the usury rate would they are not too long and reduce this time to be more in tune with daily life. »
