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First event of this kind in the history of the profession, the mobilization of this Tuesday morning illustrates the difficulties in the sector caused by the mechanism of the rate of wear.
“It’s a general tired of”, completes Bérengère Dubus, Secretary General of the Union of Credit Intermediaries (UIC). His syndicate has made a deal with brokers from all over France on Place Karcher, in the center of Paris, opposite the Banque de France. Calmly, the great hundred people who answered the call for the first demonstration of this kind in the history of the profession, discussed in clusters of five or six. And in all the mouths and posters, the mechanism that provokes their anger returns: the rate of wear.
Supposed to protect households from abusive pricing, this indicator has been at the heart of property discussions for months. Although it was not invented this year, the rapid rise in debtor interest rates has reminded us of its existence. Guided by consumer law, the attrition rate is calculated every quarter by the Banque de France by taking the average of the rates applied by a sample of 10% of bank branches over the previous three months and then increasing it by a third. Since July 1, it has been set at 2.57% for mortgages of twenty years or more.
Problem: with, in the wake of the ECB’s, the rapid increase in borrowing rates, often above 2% for durations of 25 years, e.g. the annual effective annual interest rate (Taeg) for emp …