At the beginning of the week, banks had already expressed their doubts about a proposal by Christophe Bechoux, Minister of Ecological Transition, to rely on credit in the fine to facilitate access to property. “A penalty loan is inherently more expensive in interest than an amortizing loan, while we have entered a context of higher rates,” explained the French Banking Federation (FBF). In France, pool loans may sometimes be appropriate for certain property transactions or rental investments, and very rarely for property ownership. »
This Wednesday, the governor of the Bank of France, also a prominent member of the High Council of Financial Stability, which dictates debt rules, in a social media post called for “a certain amount of caution regarding loans subject to repayment in the form of a fine.” LinkedIn. “The latter are riskier because they prolong the duration of household debt; therefore they tend to be more expensive and banks usually require more guarantees,” said François Villeroy de Gallo.
Source: Le Parisien
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