After Central Credit, it’s the turn of Febelfin and the UPC to release its figures on mortgage loans. And it turns out that 2019 is shaping up to be a banner year.
Close to 310,000 contracts mortgage loans have thus been concluded for a total amount of some 42 billion euros (excluding refinancing). It’s about a 16% increase in demand and 17% in amounts. This increase is found both in credits intended for construction and in those for transformation or purchase with transformation.
The boom was spectacular in the last quarter (still excluding refinancing): +32% of demand (108,000 contracts), + 30% of amounts (14.7 billion euros).
How to explain such a progression?
This unprecedented level of loans can be explained by various factors.
> Rates are still very low. In August, these rates ranged between 1.61% (for variable rate loans with an initial rate fix period of more than 10 years) and 2.05% (for with an initial rate fix period of more than 1 year and up to 5 years).
Finally, Febelfin indicates that, despite these record results, banks continue to be cautious in the granting of credits “taking into account the ability to repay”. However, the failure rate remains below 1%.