The current context of rising interest rates is pushing lenders to select loan applications with the utmost care. Certain criteria, such as the property’s distance from the workplace, can tip the balance in one direction … or the other.
It is becoming more and more difficult to get a loan, even if the borrower earns a comfortable living. The reason ? A context greatly disturbed by the war in Ukrainethe increase in the cost of materialsthe increase in rates and a fleet of which the supply remains tight which pressures banks to be more careful with their customer’s profile.
Indignant the contribution more and more significant that the future buyer must bring, according to BFMTV the average personal contribution in France has increased from 29,400 euros in 2021 to 52,600 euros today, bankers also look at savings and the general situation of the item.
Savings, company seniority…
Lenders thus want to have guarantees “to be sure that borrowers can cover any unforeseen expenses”. “The banks are currently systematically asking for a personal contribution (…) and a savings after the operation, which will not be put into the project, but will be used to avoid taking out consumer credit in case of unforeseen expenses, such as roofing work or purchases of a second car, and thus limit the risk of excessive indebtedness or failure to repay the loan”, analyzes Julie Bachet, general manager of Vousfinancer at BFMTV.
But that’s not all! Some banks will now look decay of a propertyits energy performance and the buyer’s professional seniority for assess your risk. So many elements that did not even integrate, or very little, the subsidy calculations before.
Fuel prices as a risk factor
Worse, 51% of brokers surveyed by Vousfinancer think so distance from good in relation to the workplace can be a decisive criterion. The fault of the increase fuel prices which is not ready to flow back into the future.
“We were refused loans because of the property’s remote location from the workplace, because of the excessive financial burden it would pose in terms of fuel,” explains Sandrine Allonier, director of studies at Vousfinancer on BFM TV.
It is therefore better to think twice before accepting a new remote job if you absolutely want to stay in a certain city.
