The latest figures from the Banko de Bank shed new light on the state of the mortgage market. In our last article, we reported the very high OECD figures, pointing out that current demand for credit is very dynamic. Let’s see what this request consists of.
Share of renegotiations in new personal payday loans
In a context of stagnating credit rates, we see that since January 2017, the renegotiation share has declined sharply (from 30% to 20%) while the change in outstanding personal payday loans has remained stable.
The renegotiations are not new credits but old credits whose conditions are no longer in line with the current offer of the market. This situation causes the borrower to renegotiate his personal payday loan and is moving towards a credit buy-out by a competing bank. In this context there is not a purchase of housing to the key.
Outstanding amounts represent the total amount of repayments by borrowers. So that’s the total mass of credits in circulation right now.
Comparing these two variables makes it possible to understand what constitutes the demand for credit. The chart highlights a change in demand where the propensity for renegotiation decreases.
This can be explained by the situation in recent years when low interest rates made renegotiation interesting, so borrowers wanted to renegotiate their personal payday loans.
The wave of personal payday loan redemption has reached maturity. Coupled with a bullish forecast of short-term rates, new buyers want to benefit from still low rates and speed up their project.
There is still time to take advantage of the current low rates to get a better credit.
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