After declining slightly in September, mortgage rates are again on a downward trend in October 2017. Borrowers with the most advantageous profile can therefore obtain minimum rates of 1.04% over 15 years, for an average rate of 1.55% over this period. Similarly, over 20 years, the average mortgage loan is displayed at 1.80%, with minimum rates located around 1.31%. The average rate over 20 years remains close to its historic record of November 2016 (1.55%). If we take into account inflation of 1% per year, the current real rate over 20 years is particularly attractive, since the deflated rate is around 0.80%. And if inflation reaches 2% in 2018, as the MCB would like, then borrowing over 20 years would be equivalent to taking out almost free credit.
How to explain this downward trend?
First, by the decline in demand. The borrowers show a certain wait-and-see attitude and the banks are anxious to maintain their level of activity on the sale of credits. Most financial institutions, for whom credit is a flagship product, wish to end their year well in order to prepare for the year 2018 under the best conditions. This is why in this month of October, a dozen banks have readjusted their rates with reductions of 0.10 to 0.15% depending on the durations. In addition, some borrowers remain particularly courted.
The most beautiful files benefit from very good discounts, if they can advance solid incomes, a patrimony, a personal contribution, but also a professional stability and balanced personal finances.
Why take the opportunity to buy back credits?
The level of borrowing rates plays an important role in the benefits of restructuring or buying back credit. When you buy back credits, you combine your old loans into a single restructuring loan with a single monthly payment to repay. The rate of this new loan is used as a benchmark to assess the savings you realize. The lower the rates, the more the interest of a loan repurchase is interesting. Already very advantageous by nature for households in difficulty, the repurchase of credits can be all the more attractive if you have the possibility of negotiating a low rate with the organization which buys back your old loans.
Carried out with the help of expert advisers, such an operation allows you to lower your monthly payments ( sometimes up to 60%, with an extension of the durations ), while simplifying your management, and sometimes also by integrating new sums into your single loan, this in order to finance your new projects.