In May, few banks changed their mortgage rates, which overall remain very attractive. On the other hand, due to the dynamism of the market in April, leading to an increase in requests and leaves to be paid before the end of May in the banks, the processing times for files remain high… Patience, patience!
Little movement on rates in May …
In May, few new scales received: among these, some banks raised their rates slightly, from 0.05% to 0.10%, while others left them stable. These few isolated increases may be linked to the desire of certain banks to regulate the flow of incoming credit files, or to capture only the best files less affected by these increases. There are also some declines of 0.10%.
Average rates are currently down slightly by 1% over 15 years, 1.20% over 20 years and 1.40% over 25 years, and for the best profiles, the posted rates are negotiable. You can borrow at less than 1% over all terms: 0.50% over 15 years, 0.75% over 20 years and 0.90% over 25 years.
“Currently, banks are adapting their scale according to their file processing capacities, undermined by the new confinement and the changes in vacation dates which have forced some of the bank staff to go 100% into teleworking or holidays, while many files had been transmitted in recent weeks, but these rate increases may no longer be on the agenda when the flows have been processed … before a summer that is no doubt more complicated in terms of deadlines, like this ‘is traditionally the case, ”notes Julie Bachet, Managing Director of Fund you.
The lengthening of processing times observed since the end of March seems to continue
There are two reasons for this: there were a lot of loan requests in April linked to very good dynamics in the real estate market but also a disorganization linked to the confinement period which led to disruptions among the staff of the banks who had to take additional leave or be more teleworking. In addition, many have leave to pay before the end of May, which could lead to further delays in May …
“In April, we saw an increase in credit applications of 20% compared to last year, after a very dynamic month of March as well. Finally, this 3rd confinement will not have had any impact on the market, apart from the processing times in banks which have lengthened … sometimes up to 2 to 3 weeks to obtain an agreement in principle on the file, and up to 1 month to have a firm proposal. It may take another 2-3 weeks for loan offers to be issued. You must therefore be patient and ask for a 60-day period of conditions precedent for obtaining a loan, which has now been the norm for 1 year, ”explains Sandrine Allonier, research director at Vousfinancer.
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