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Credit rates reach an average of 4.3% over 20 years in October. This is three points more than at the start of 2022. And it is nothing compared to the rates charged for bridging loans, to pay for a new home when you have not yet sold the old one.
François Sevaistre bought his first apartment five years ago in a residence in Hauts-de-Seine, which is now for sale. His new, more spacious property is in the building opposite. To obtain it, this IT director took out a bridging loan, because his old apartment has not yet been sold. It is therefore impossible to take on a second loan for the new one. His bank therefore granted him a cash advance. This is what we call a bridging loan, 63,000 euros in his case.
Banks have strengthened access conditions
He will have to repay the amount when he resells his home. With the two apartments, he fell into debt to the tune of one million euros. A bridging loan must be repaid within 24 months maximum. Problem: the real estate market is seized up, so the banks have strengthened the conditions of access. “Today, we are rather in a situation of stabilization of prices, in rates which are rising, transactions which are slowing down, so we are on a very cautious policy of the banks on bridging loans“, indicates a professional in the sector. This year, bridging loans represent 7% of home loans.
Among our sources:
38e real estate observatory – Meilleurtaux – October 17, 2023, page 9
Non-exhaustive list.