The average mortgage rate reached 1.48% in August 2016 before rising slightly to 1.55% in July. These figures published on September 5 by the Observatoire du Crédit Logement / CSA show that rates continue to plummet despite a small rise in property prices. It is therefore quite logical that the total amount of credits granted by banks and credit institutions reached the threshold of 21.1 billion euros in July 2016. By comparison, it was 14.2 billion in March 2016 compared with 15.9 billion in April 2016.
Credit renegotiation surfs the wave
However, experts note that 44% of mortgages granted in July 2016 were actually renegotiations. According to the statistics of the Bank of France, renegotiations accounted for 30.4% of mortgages in April 2016. Since then, the rise continues with 34.5% in May and 38.1% in June, thus reaching 44% in July.
For those who have not yet subscribed to a mortgage, using a credit calculator will allow them to have all the details concerning the loan they wish to apply to a financial institution. And for those who already have a current home loan, the steady decline in credit rates are valid arguments for renegotiating with their borrower. In this way, they will also benefit from more attractive rates, which will allow them to make real savings.
The conditions for renegotiating
It should be noted that a renegotiation of credit rates is only successful for a borrower if the difference between the rate and the new rates applied is greater than 1%. And it is often interesting to negotiate with your bank to get a lower interest rate than to buy a loan. Because, besides the obligation to make a simulation of credit to find the best offer, the steps for a repurchase of credit and the expenses of file to bear risk of discouraging the candidates.