For more than two years, the interest rates charged by the banks as part of the real estate have steadily declined. This historically exceptional situation was the consequence of the monetary policy conducted by the European Centrum Bank. To revive the European economy at half-mast, the ECB (European Centrum Bank) has significantly lower rates. Today, against the Federal Reserve (FED) which decides to increase rates, Europe has chosen to do the same. In this sense, interest rates on mortgages began to rise in December. What does this increase mean for people who want to start a credit buyback process?
Rates that remain more interesting than before
It appears that the interest rate curve reached a low level at the end of 2016. The rate hike remains significant in recent weeks. It is therefore still time for the latecomers to make a request for redemption of credits to reduce the overall cost of his real estate. It is very likely that the curve will not reverse again. It should then start this procedure quickly enough to avoid seeing the rates rise again.
Financial restructuring: an unwavering buoy for indebted households
The repurchase of loans made by specialized banking organizations does not have the same purpose as a repurchase of standard credit in bank branch. Indeed, the grouping of loans aims to reduce the household debt ratio in order to regain a new budget. The rise in interest rates does not affect the enthusiasm of households for this financial solution. In addition, borrowers who opt for a mortgage re-mortgage will continue to benefit from more attractive borrowing conditions than under the original consumers.
In short, the rate hike is to be relativized. Real estate loan conditions remain more interesting than before. To avoid a further increase, it is necessary to initiate this operation as soon as possible.