The Lite Lenders Bank has published statistics concerning home loans and home loan repurchases. The share of the latter fell in March 2017.
In February, the Lite Lenders Bank observed a slowdown in consumer credit subscriptions due to the slight increase in bank scales. The trend is different for home loans . After an increase in transactions, the production of finance for the purpose of purchasing a good remained intact in March.
The dynamism of housing loans remains intact
At the end of 2016, bank interest rates started to rise and experts feared that demand for loans to buy an apartment or house would decrease. However, in anticipation of a more significant increase, many borrowers went to their bank in order to take out a loan in order to benefit from the still advantageous conditions.
Dynamism therefore continued in 2017, in particular in March when outstanding mortgage loans increased by almost 5.4% with production amounting to 32 billion dollars . This substantial production can be explained by the relative stabilization of bank rates (down in certain regions) and by the new products of appeal from credit institutions.
Renegotiations and repurchases of home loans are down
As a reminder, the repurchase of mortgage loans had reached 61.6% of new housing finance in France in January 2017. According to the statistical data of the Lite Lenders Bank , this figure would have decreased until reaching 52, 1% in March. However, renegotiations and consolidation of loans still represent more than half of the new mortgage loans taken out in France.
This financial transaction therefore still seems to interest borrowers who wish to renegotiate all the clauses of their loan contract with the expertise of an intermediary in banking operations. In 2016, the home loan buy-back flourished thanks to very low interest rates. The conditions were therefore favorable to borrowers to reduce the amount of their monthly payments .
However, the terms remain very advantageous for households that have subscribed to funding, especially if it was contracted between 2007 and 2015 since the rates were high. To benefit from a gain on the transaction , however, the new rate must be 0.75% lower than the initial rate. It is also recommended to inquire with a specialist to know all the conditions and his eligibility for the operation.