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Rise in rates for mortgage loans: “Our projects have almost all fallen through”

  • Post category:Economy News
  • Reading time:2 mins read

Fewer mortgages. This is the finding of brokers and banks in recent months. The cause: rising interest rates (about 2%), the energy crisis and general inflation which are shaking up budgets, but also properties with unfavorable PEBs which cannot find takers.

“Our projects have almost all fallen through.” For Julie, (assumed first name) it is clearly the rise in interest rates that is preventing her from buying today. A few months ago, she hoped to borrow 300,000 euros at an advantageous rate. But returning to the bank recently: “The interest rate had taken 1%. It was at 2.41%. For a loan of 250,000, or 50,000 euros less, we had to repay almost the same thing”, she explains at the microphone of BEL RTL.

“People want to consolidate their credit”

This is not the only current obstacle. Bernard Keppenne, chief economist at the CBC, elaborates: “On the one hand, properties with low PEBs meet with less interest. Today, we have fewer properties available on the real estate market. The second reason is the deterioration in purchasing power and the increased energy bills.

All these obstacles impact credit applications. There are 20% less according to Pierre Jergeay. This mortgage broker now has more requests: “People want to consolidate their credit to lighten their monthly load. Inevitably, the duration will lengthen. What people are looking at is what is coming out of their pocket now.”
Customers decide to pay less each month, but lengthen their loan.