Real estate credit: affected by the coronavirus crisis, some professions can no longer borrow
In August, the mortgage rejection rate affected one in ten applicants. Despite still low interest rates, banks have tightened the conditions for accessing mortgage loans. Certain professions affected by the economic crisis, in particular in the event planning or transport sectors, are directly concerned.
Interest rates for taking out a home loan fell again in August. All the lights could be green to borrow but since the start of the coronavirus epidemic, the conditions for access to mortgage credit have been tightened by banks.
Lots of backlogs
Some professions affected by the crisis are severely impacted, reports Europe 1. « There are sectors that are suffering, transport is suffering, everything that is event-related is also suffering ”, confirms the CEO of a large French bank. “So obviously, we are a little more careful on this type of file. »
In August, the rate of refusal of real estate loans increased considerably, due to the cautiousness of the banks. For example, one in ten homeowners couldn’t get a deal.
Concrete case found by Europe 1, that of a butler. The man wanted to build a house in Corsica with his wife and a friend, also in the event industry. But the doors closed in front of them. ” When they realized that we were in the event, we were told ‘never credit for you ladies and gentlemen’ … », Confides the man to Europe 1.
The project is therefore postponed. ” It’s been eight months since we slept on this project, continues the butler. It was the realization of a lifetime and we were robbed of a form of dream. “During the summer, the Covid-19 crisis divided its activity by ten. The time to imagine other projects, even if the realization will have to wait.