This could be good news when it comes to downsides. This is not the case for attrition rate. This maximum rate from which a banking establishment does not have the right to lend money reached its historical minimum on April 1, in a context of strong increases in credit rates.
This leads to a scissors effect and the exclusion of more and more borrowers. And this does not only concern the most fragile or those who have a high insurance rate due to their age or due to some health problem.
Attrition rates falling further on loan terms 20 years and older
In the current context of rising credit rates, the release of usury rates for the second quarter of 2022, rates above which a bank is prohibited from lending, was eagerly awaited.
If in short-term loans (less than 10 years), the attrition rate increases, it falls again for loans of more than 20 years to reach its lowest level at 2.40%, compared to 2.41% in the first quarter of 2022 and at 2.6% per annum. behind.
“Over 20 years and more, the most common credit durations, the attrition rate has dropped by 20 points, even though credit rates have increased by 15 points. In April 2021, we borrowed on average at 1.25%, compared to the current 1.40%, with a currently lower attrition rate, analyzes Sandrine Allonier, director of studies at the loan broker Vousfinanciar. Therefore, it is understandable that today many borrowers are in fact excluded from credit. »
A problematic method for calculating wear rates
Usury rates are intended to protect borrowers by prohibiting lending at rates that are too high, but their often disputed method of calculation poses a problem.
According to article L. 314-6 of the Consumer Code, “a usurious loan is any conventional loan granted at a global effective rate* that exceeds, at the time of its granting, by more than a third of the average effective rate** practiced during the previous quarter by credit institutions and financial companies (…). It is the Banque de la France that sets the wear rates according to the duration of the loan.
“The attrition rate for the next three months is calculated, therefore, based on the rates actually granted (insurance and all costs included) in January, February and March 2022. However, in January and February, we could still borrow with a very good profile at less than 1% for 20 years. Therefore, the recent and very strong rise in interest rates has not been taken into account, or very little. It is this three-month delay that causes a scissors effect, analyzes Sandrine Allonier of Vousfinanciar.
And since those who are offered too high a loan rate cannot borrow due to usury rates, these higher rates are not taken into account in the calculation of the usury rate, which therefore takes longer. to go back up. »
Rejected loan applications
According to Vousfinancer, among its clients, 76% claim to have recently had a loan denial due to attrition or the maximum debt ratio. For example, a 40-year-old couple with an income of €45,000 who wanted to borrow €200,000 for 20 years with a 10% down payment could obtain an APR of 2.70%, but they were denied the loan for exceeding the interest rate. wear at 2.40%. However, its debt ratio was 28% (it must not exceed 35%).
“While until now the most fragile profiles or those with some health problem or advanced age, penalized by the insurance rate, were the most impacted by these caps, now it is the more traditional profiles that today are also excluded from the credit”, observes Julie Bachet, general director of Vousfinanciar.
* The APR includes the nominal rate of the loan but also administration costs, the cost of insurance and mandatory guarantees, etc.
** Or wear rate