One credit out of four granted to youth under 30

One credit out of four granted to youth under 30
© Belga

In 2017, BNP Paribas Fortis granted one loan out of four to persons less than 30 years old, indicated the bank on Wednesday in its annual retrospective of the Belgian mortgage market. The bank also granted one credit out of ten to persons over 55 years old. “These figures prove that the official line on youth or the elderly not having access to credit is not verified by the facts,” concludes the bank’s head of mortgage credit Sébastien Degand.

In 2017, banks granted 31,047 billion euros in mortgage credits in Belgium, notes BNP Paribas Fortis on the basis of figures from the Professional Union of Credit. The picking up of real estate market, economic growth, consumers’ confidence at the highest since 2001 and the stability of interest rates justify this good figure. The number of real estate transactions in its own has increased by nearly 1% between 2016 and 2017.

At BNP Paribas Fortis, leader of the mortgage market, the average amount borrowed for loans has increased by 8% in one year to reach 158,801 euros. The quota — that is, the borrowed amount as per the good’s value — has decreased by 3% compared to 2016, to reach 76%. This last observation seems to be linked especially to a high increase of the number of credits granted to those over 55.

The number of credits granted by the bank to “baby boomers” has indeed increased by 7% in one year. The average amount borrowed, 143,455 euros, is below the general average, and the over 55 borrow on average 57% of the good’s value.

On the other side of the age pyramid, BNP Paribas Fortis announced to have granted a quarter of its credits to persons aged less than 30. Here, the average borrowed value, 181,559 euros, is superior to the general average, and the average quota reaches 86%.

For 2018, the bank expects a very slow rise of rates (0,50%) and stability in terms of demand. However, the stock market fragility observed this week at Wall Street could lead to these predictions being re-examined.

The Brussels Times

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