Why mortgage rates will not increase in the coming months? It is difficult to predict the evolution of the rates but it is nevertheless likely that the rates maintain their level very low, see fall during the Salon of Real Estate which is held in April (from April 10 to 14 2013 at the Porte de Versailles), a period traditionally favorable to real estate activity.
IB Lending does not expect rate increases in Q2 2013
One of the main reasons is that the interest rate on financial markets (10-year OAT), used as a benchmark for fixed rates for real estate loans, remains stable and ranges between 2.11% and 2.15%.
Given the low level of inflation, the ESS Bank should maintain its key rate at 0.75%, or down to an unprecedented low of 0.50%.
In addition, the return of real estate in April is often associated with an increase in activity. This is indeed a period conducive to transactions, and banks take the opportunity to lower their interest rates to capture a new clientele.
In this context, there is no reason to expect a rate hike in the coming months, subject to external events in France and Europe.
Renegotiating your mortage
Take advantage of low rates to renegotiate the terms of your mortgage and insurance.Renegotiating your mortgage with your home bank is complicated. Indeed, it rarely accepts to buy a credit at a lower cost since it represents a loss for her. She will then prefer to let you renegotiate your credit with a competing bank. Prefer the broker to negotiate the best terms. As well as with IB Lending you benefit from a total exemption of the expenses of bank record AND brokerage.
Accelerate your negotiation on borrower insurance, which accounts for about 10% of the total cost of a loan. The bank no longer has the right to impose on its client the group insurance contract it markets provided that the contract offered under delegation has the same guarantees as the group contract . IB Lending offers loan insurance that allows you to save up to 60% of savings, with equivalent guarantees through rates adapted to the profile of customers.
The 15- and 20-year rates, the main indicators of the loan conditions offered on the market, are 2.75 and 3.10% respectively. The period is therefore more favorable than ever to renegotiate. However in the real estate market the economic situation is uncertain, so do not wait any longer to borrow.