Mortgage brokers are concerned about the level of usury rates. Since April 1, it has stood at 5.19% for loans over twenty years or more. This figure is revised every three months based on the average rates charged by banks during the previous quarter, increased by a third. It defines the maximum rate at which establishments can lend, including both the nominal rate, but also the administration, guarantee and loan insurance costs.
Today, it is the quarterly review rate that worries brokers. “The banks raised their scales at the beginning of April in the context of the increase in state borrowing linked to the conflict in the Middle East,” explains Sandrine Allonier, spokesperson for Vousfinancer. However, the usury rate is based on the rates practiced between January and March, which creates a gap and begins to block certain files. »
If the average rates over twenty years are currently around 3.40%, the worst cases are borrowing at 4.1% in mid-April, according to Empruntis. Taking into account loan insurance and additional costs, the overall effective annual rate can approach the fatal usury threshold for certain loan applicants.
Refusal of files
“This is the case for those over 50, for whom borrower insurance is more expensive, particularly for short loan periods,” explains Ludovic Huzieux, co-founder of Artémis Courtage. In fact, fixed costs such as application fees, brokerage fees and part of the guarantee fees weigh more heavily, in percentage, on a twelve-year loan than on a twenty-five year loan. »
In addition, the usury rate fell on April 1 for short terms: it stood at 4.48% for loans over ten to twenty years, compared to 4.59% previously.
Refusals of files on the grounds that they exceed the usury rate are likely to increase in the coming weeks, since “the scales should continue to increase slightly in May while the current usury rate remains in force until June 30,” adds Sandrine Allonier.
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Originally published at Almouwatin.com
