In an interview given to La Dépêche du MidiFrançois Villeroy de Galhau, governor of the Bank of France, proposes the establishment of a “simple and rapid” procedure, which would allow candidates to obtain explanations.
“I proposed with Minister Bruno Le Maire a review procedure put in place by the banks, when certain customers have the feeling of having suffered an unjustified refusal”, explains François Villeroy de Galhau, in an interview with our colleagues of La Dépêche du Midi.
The governor of the Banque de France adds that it would be “desirable for this simple and rapid procedure to be in place at the beginning of 2024”. Recognizing that “real estate is a very interest rate sensitive sector.” A sector which was “carried by their very low level until the beginning of 2022”.
Banks “have an interest” in dispelling suspicion
After experiencing a very sharp increase in recent months, mortgage rates should now “tend towards gradual stabilization”. François Villeroy de Galhau recognizes that “many French people have the impression that banks have increased their refusal of real estate loans”.
He suggests that “it is in the banks’ interest to dispel this suspicion, even if exaggerated, and to show that the right files are being financed.” However, he insists, “real estate credit remains generally open to households”. The “monthly amounts granted” have now returned to what was observed before 2015.
New credit easing measures
At the end of the meeting on Monday of the High Financial Stability Council (HCSF), intended to evaluate the measures to be put in place in order to relax the rules governing real estate credit, Bruno Le Maire announced new decisions.
In addition to contacting banks, in order to obtain a review of their file, borrowers will be able to see the maximum duration of their credit extended by two years, from 25 to 27 years. The condition: this measure would only apply to the purchase of an old property, requiring work, in particular energy renovation, creation or expansion of surface area. In addition, they will have to represent 10% of the total credit, compared to 25% until then.
Only 14.3% of files authorized to exceed 35% debt
For their part, banks will be able to show more flexibility. To date, they are authorized to deviate from the granting criteria, in particular the maximum of 35% maximum debt over 25 years, for 20% of their files. However, according to the HCSF, they only do this for 14.3% of files.
This 20% ratio can now be calculated over nine months and no longer just one quarter. Which, we hope at the HCSF, should make it possible to increase the number of eligible profiles. “The HCSF issues common sense standards to avoid over-indebtedness of the French,” judges François Villeroy de Galhau in La Dépêche du Midi.
2023-12-07 16:56:46
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