Bérengère Dubus, head of the brokers’ union, claims that the Bank is in denial about the impact of mortgage rules
French mortgage brokers will stage a demonstration at the Bank of France in protest against rules that they say are blocking home loans for thousands of people.
With interest levels rising, the brokers’ union is unhappy that the national bank has not raised a cap that it imposes to protect borrowers from what are deemed usurious rates. At present this means that banks are not allowed to offer an overall rate above 2.57 per cent for a 20-year mortgage.
Basic interest rates are up to 2.11 per cent but borrowers are obliged to add mortgage insurance, and they pay stiff fees that can quickly raise the overall charge to the so-called “usury threshold”. […]