“The importance of the contribution has increased in recent months, credit institutions becoming more selective in the processing of applications”

2023-09-07 14:26:38

Hello The noose is tightening,

The usury rate is the maximum rate at which credit institutions, including banks, are authorized to lend. It therefore aims to protect borrowers against excessive rates. Its calculation is entrusted to the Banque de France. The usury rate is in principle revised on a quarterly basis, but since February 1, this revision has become monthly so that it adapts more quickly to the increase in the key interest rates of the European Central Bank, and thus avoids that it does not slow down credit flows too much. The last revision, on August 29, set the usury rate at 5.56% for fixed-rate mortgages of twenty years and more. By way of comparison, it was only 2.41% at the end of 2021. Note: this ceiling applies to the annual percentage rate of charge (APR), which takes into account all the costs linked to the loan, therefore interest but also borrower insurance, guarantee fees (bond or mortgage) and administration fees.