This and similar headlines are making headlines these days. We've been in a lull in prime rates and inflation for so many years that the new, uncontrolled scenario leaves all families with higher incomes in great anxiety, especially those who have taken out variable-rate mortgages.
On 17 September, on the Luís Marques Mendes programme on Sic, you can see the following projection from Deco Proteste, showing the brutal increase in charges:
The government recently announced new measures In the short term, this is an option that seeks to alleviate this impact (although in the medium term, if rates don't fall as expected, it could have complex impacts again), and it's best to ask your bank for all the explanations you need to make the most of it. Basically, it involves fixing the instalment of the house for two years on the basis of a rate equivalent to 70% of the 6-month Euribor, plus the application of the spread. It should be noted that this new support only applies to those who have taken out a mortgage loan for the purchase of their own permanent home by 15 March 2023, with a variable or mixed interest rate and a residual term of five years or more, or to contracts that have been concluded as part of a credit transfer operation, regardless of the date of conclusion.
However, this new moratorium will take some time to arrive (expected to start on 2 November) and you shouldn't neglect all the other ways of reducing the costs associated with the important mortgage loan. Check to see if you've already taken advantage of all the possibilities:
1 - If you have some savings together, consider using them to repay the debt
Unless these savings are invested in investments that free up margin on top of the mortgage debt, it will always be the right decision: Don't forget that the monthly instalment you pay is above all an interest rate on the capital owed, and when it goes down it will always have a big impact. The government has obliged banks, at least until 31 December 2024, not to charge additional amortisation fees for contracts indexed to variable or mixed rates during the variable rate period.
2 - Negotiate with the bank to extend the term of the credit agreement
Over the total life of the contract, it may cost more, but this dilution can mean hope for balancing family accounts, especially for younger families. And you should plan in advance with the bank to be able to revert to the original term as soon as you reach a better situation.
3 - Try to renegotiate the spread, with your bank or the competition
If you have spreads above 1%, it's worth trying to trade. Note that spreads have been falling significantly over the last decade.
If the best spread you can get is at a different bank to your current one, take into account costs such as: the commission for opening the file, the property valuation, formalising the new contract, the new deed and all the associated taxes, as well as what kind of consideration the bank is asking for, such as debit and credit cards, financial products and more. insurance policies.
4 - It almost always pays to take out the required insurance outside the bank
Those who take out a mortgage often choose to take out the multi-risk and life insurance offered by the bank in exchange for a lower spread. But beware:
YOU MUST ASK THE BANK (at the time of contracting or at any time during the contract) FOR A CALCULATION OF THE PAYMENT WITH AND WITHOUT EACH OF THE INSURANCES TAKEN OUT AT THE BANK AND ASK US FOR SIMULATIONS.
IN MOST CASES, ESPECIALLY WHEN IT COMES TO LIFE INSURANCE, IT WILL BE MUCH CHEAPER FOR YOU NOT TO TAKE IT OUT THROUGH THE BANK. This is a very sensitive economy in a high percentage of cases.
The process is simple: it only requires you to ask the bank for a statement of the outstanding capital (and to suspend the authorisation to debit the account of the insurance in question); it lets us find the best options and you can then demonstrate to the bank that you have new active insurance!
Renegotiating the insurance policies associated with mortgage loans is currently a very effective solution for lowering the cost of the loan, particularly for people over 40. It can even generate savings greater than a reduction of one tenth of the mortgage amount. spread. (quoting the newspaper ECO).
5 – Payment of the house instalment with the PPR
In this exceptional phase, holders of Retirement Savings Plans will be able to request their monthly redemption up to the maximum amount of the instalment with the home loan, without suffering any kind of penalty, even if they have taken advantage of tax benefits and have not yet completed the period required by law.
It's a help that can be invaluable to those who are suffering the most in terms of their family balance. And, of course, it can be a "good deal" as a way of withdrawing capital from PPR's started in phases of unattractive returns (there is a prospect of increases, however).
We are at your disposal to help you simulate the insurance you have associated with your home loans. We would be delighted to help you optimise your resources in this situation too.
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Don't wait for the moratorium and lower your instalments today
