French Mortgage Rates Drop
Thursday 15 September 2011
A host of lenders in France reduced mortgage rates last week, says John Richardson of specialist mortgage brokers, International Private Finance Ltd
The ECB announced last Thursday that eurozone interest rates will remain unchanged at 1.5%.
With forecast rises in interest rates in the eurozone failing to materialise, financial markets are now predicting interest rate cuts. This has led a number of French lenders to reduce their variable and fixed rates.
The ‘TEC10’ index is the yardstick by which French fixed rate mortgages are calculated. Fixed rates have decreased in the last week due to the TEC10 index coming under increasing pressure, due to an environment of anticipated low growth in France.
French banks have historically been very cautious with their lending criteria (a position UK banks have adopted post credit crunch), which means they are in a stronger position to lend compared with their European counterparts.
This has resulted in increased competition amongst the banks in France to secure clients, a change which has seen already competitive mortgage rates drop even lower.
At the moment variable rates start below 3.00% with a 20% deposit. A full term fixed rate over 15 years is currently available at 4.00%. You can view current French mortgage best buy tables at rates.
Further evidence of the strength in the French mortgage market is signalled by the availability of 100% mortgage products.
Although the criteria adopted by the French banks have tightened for certain types of lender and property (eg leasehold) the majority of banks’ lending to non-residents have not changed any of their conditions; most continue to have a strong appetite to lend on resale properties for those purchasing second homes in France.
If you would like a tailored mortgage quote then please submit your details here or call one of our French mortgage consultants in London on +44 (0) 207 484 4645 Mon-Thurs 08.30-19.00 Fri 08.30-17.30 Sat 10.00-14.00 (GMT).
John Richardson will be present at the A Place in the Sun Live, Birmingham NEC, where he will be making a presentation on the French mortgage market, and where he will also be available for private consultations anyone wishing to discuss their personal situation in a little more detail. Visit their exhibitor page for more information.
This article was featured in our Newsletter dated 15/09/2011