Making real estate credit more flexible: Bruno Le Maire and François Villeroy de Galhau will discuss it

Asked on TV5 Monde about the growing difficulties of access to mortgages for households faced with rising interest rates, the minister replied that the subject would be on the menu of an interview with François Villeroy de Galhau.

“We will discuss it,” said Mr. Le Maire about a possible relaxation of the rules surrounding this market.

Banks can now derogate from the rules according to which they can only lend on condition that the effort ratio, that is to say the total amount of housing-related expenses in relation to income, does not exceed 35%, and for a maximum of 25 years (or 27 years in the event of work prior to moving in).

They can do so for 20% of the credits, provided that these derogations essentially concern the acquisition of a main residence and aim in a third of cases to support first-time buyers.

"Can we consider relaxations within this 20%?" Asked Mr. Le Maire about these rules in force since January 1, 2022.

This maximum threshold intended to protect borrowers is accused by its detractors of preventing banks from lending during periods of rising rates, because of its restrictive criteria.

A second topic of discussion between the two men will focus on the usury rate, a maximum rate intended to protect borrowers but here also accused of preventing banks from lending, continued the French minister.

This rate of wear has been relaxed, henceforth recalculated every month instead of once a quarter. But Bruno Le Maire said that the authorities were going to "study the possibility of extending this system", supposed to end in July.