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What the ECB rate hike will change for mortgage borrowers

The rise in interest rates will also contribute to a certain slowdown in activity terovesalainen – stock.adobe.com

DECRYPTION – For the first time in 11 years, the European Central Bank has decided to raise its main interest rate by 0.5%. Bad news for borrowers even if the situation has already been widely anticipated by banks.

Admittedly, the increase in the key rate of the ECB was planned, announced upstream by its president Christine Lagarde and largely anticipated by the banks. It was however higher than expected, at + 0.5%, where many observers were counting on only half. This is clearly bad news for borrowers who should see their rates rise as well as their difficulties in finding financing. “There will be a scissor effectbelieves Me Catherine Saint Geniest, partner in charge of the real estate law practice at Jeantet, since the loan durations have not stopped climbing and are almost at their maximum while the rates continue to rise and the HCSF exercises drastic control over the banks.

A situation that will also contribute to a certain slowdown in activity. “We are already seeing a drop in prices and a slowdown in operations between a wait-and-see attitude on acquisitions, growing financing difficulties and blockages…

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