Different elements can cause the interest rate on a mortgage loan to vary: the policy rates set by the European Central Bank (ECB), which directly affect the cost of refinancing banks, the duration of the loan, the profile of the borrower and the geographical area.
“Banks may apply different rates from one region to another,” states broker Meilleurtaux. This is actually the case with banking institutions that have regional funds. Their credit interest rate policy depends on their own business goals and the local economic situation. However, as in December last year, in January, credit rates are rising everywhere in France from 0.10% to 0.50%.
The lowest credit interest rates in western France
According to the weight of the broker Empruntis, in January borrowers can get a loan at an average interest rate of 2.75% over 20 years in western France, the region where rates are the lowest.
While the average rate is 2.80% in the Southwest and 2.85% in Île-de-France, in the Mediterranean and Rhône-Alpes regions. In the latter, where the average interest rate was 1% in January 2022, borrowers will have to bear over the course of a year an increase of around 19% in their monthly loan payment (excluding insurance) for a loan of €200,000 over 20 years at 2, 85 per cent
In the North and East regions, it is possible to achieve an average rate of 2.90% over 20 years.
The broker Meilleurtaux estimates average rates at 2.53% in the western region, 2.80% in the eastern region or 2.92% in Rhône-Alpes.
Best profiles: Rhône-Alpes well located
For the best files, according to Empruntis, it is possible to obtain in January an average rate over 20 years, ranging from 2.20% in the West (versus 2.10% in December) to 2.85% in the East (versus 2.45% in December), passing 2.35% in Île-de-France (as last month), 2.55% in Rhône-Alpes (against 2.26%) and 2.60% in the Mediterranean (against 2.25%) .
According to Meilleurtaux, the best profiles can achieve an average rate of 2.20% over 20 years in the western part and 2.55% in the Rhône-Alpes and in the eastern region.
Wear rate: a new method of revaluation from 1 February
A little over a week after the meeting with the associations of brokers and banks, on January 20th the Banque de France formalized its decision to “continue for a limited period with a monthly adjustment of interest rates. [taux au-delà desquels une banque ne peut pas prêter de l’argent, NDLR] from 1eh February. »
According to the broker Vousfinancer, this monthly review is really good news, which should make it possible to level out credit and the real estate market. In fact, their quarterly update last year led to several loan rejections during a period of rapid increases in credit rates.
According to Cécile Roquelaure, director of studies at the broker Empruntis, the monthly update has three significant advantages for future borrowers: “Banks will be able to price credit at its fair price and therefore start lending again or lend more. In addition, access to credit will normalize on a monthly basis, which will allow the market to gradually get back on track. Finally, the bottleneck that was emerging in the summer will be avoided [l’instruction des dossiers de prêts par les banques se complique durant cette période, avec des délais rallongés en raison des congés, NDLR]. »