credit conditions are tightening

According to a study by the credit broker You finance, the conditions for access to credit are tightening drastically this spring. Elements of explanation with Charlie Cailloux, legal adviser for Particulier à Particulier and the PAP.fr site.

franceinfo: So it is more difficult to obtain credit?

Charlie Pebbles: Yes, that’s what 70% of brokers in this network say in an internal survey. Because of the consequences of the war in Ukraine (inflation in particular), the banks are more attentive to the situation of the borrower and the qualities of the property he plans to buy. First, they reinforce the control of the personal contribution and the remainder to live. A personal contribution of at least 10% of the amount of the transaction is essential (some brokers even claim a minimum of 20%), and banks ensure that the borrower keeps savings after the acquisition to meet expenses. unforeseen events, major works or the purchase of a car.

Why are banks more attentive to the borrower’s file?

Quite simply because the banks ensure that the borrower will have, once his monthly installment paid, the mattress necessary to cope with the increase in energy and fuel expenses, and price inflation in general. There are two other criteria that banks pay more attention to now. First, the home/work distance: if the home you plan to buy is more than 50 kilometers from your place of work, the bank could limit your debt to 30% so that you can meet your fuel when, in principle, you can devote 33% of your income to repaying the credit; if you depend a lot on your car, the bank therefore requires you to increase your living allowance even if it means reducing your borrowing capacity.

And then, too, and this is another consequence of inflation and the scarcity of energy, banks are more attentive to the energy performance of the property you buy. A poorly insulated property, inefficient heating means that your energy bills will be heavier and that you will quickly have major work to finance. However, materials are also becoming scarce and their prices are increasing.

Any advice for people looking to buy or sell right now?

For buyers, plan a personal contribution as large as possible (10% is the minimum), and a “viable” living allowance: in general, it is set at 850 euros for a single person, 1,500 euros for a couple. , plus 300 euros for a dependent child but beware, in a context of inflation, banks can be more cautious. If you are a seller, have a serious property appraisal carried out and do not overstate the price, buyers are well informed and know the market. Finally, find out about the buyer’s financing plan before accepting an offer.


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