It is no surprise that Linton family receives, in December, new rates of rates of its partner banks are “on the rise”. The majority of banks have decided to increase their fixed rates to individuals on all durations and on all profiles. Banks that have not increased their rates this month simply keep their previous month’s grid.
As we predicted, the upward movement continues and should continue slowly but surely throughout 2017. However, do not panic, rates remain at very low levels. It is more than ever interesting to invest in real estate by contracting a loan.
Banks raise rates for credit buyback operations
The novelty this month is that some banks have decided to apply a rate increase on mortgage repurchase files.
For example, in a mutual bank in Paris, a customer who wants to buy his mortgage will get a rate 20 cents more than a customer who comes to make a new acquisition.
Example : for a loan of € 100,000 over a period of 15 years, a rate increase of + 20 cents represents an increase of + € 1590 on the total cost of credit.
This sum (€ 1590) still represents the cost of a home loan guarantee or the cost of early repayment penalties to be paid to the bank in case of redemption by the competition (6 months of interest up to 3% capital remaining due) . This is not negligible in a redemption operation!
By increasing rates on loan renegotiations, banks hope to streamline the volume of files. The flow at the end of the year is so important that the back office services are starting to get bogged down. They are obliged to prioritize the files that include a 0% rate loan or a Pinel Law in order to publish loan offers before 31/12/16 (deadline to take advantage of these devices).
There are no small savings when renegotiating a mortgage!
When renegotiating a home loan, beyond the rate, you have to think about comparing insurance. The cost of a delegation of insurance can be up to 3 times cheaper than the insurance of the bank. It is also necessary to negotiate the exemption of the expenses of file which can be up to 1500 € …
Please note that with LC company the banking and brokerage fees are at 0 € for any financing of a principal residence, secondary and the first rental investment!