Interest rates are currently at their lowest since the end of the Second World War! The average has set itself at 3.3% in September, a drop of 0.1% compared to August, meaning it really is the lowest rate since 1945, according to a study by the Observatoire credit logement/CSA, published on the 4th of October.
The lowest previously recorded rate was 3.36% dating to the fourth quarter of 2005, the authors of the study remind us. “The financing conditions of the banks are still excellent, and their active commercial strategies are the root cause of this record”, explains Michel Mouillart, economics professor at the University Paris X-Nanterre. The drop has been very quick as rates were still at 3.93% in the third trimester of 2009 and 5.07% in the fourth trimester of 2008, according to the statistics.
This means now more than ever is the perfect time to take out a fixed rate French mortgage, at their lowest ever rate.
Best French Mortgage products currently on the market
1. Interest only mortgages with variable rates starting from 3.15%
2. Rates starting from 2.20% for equity release and re-mortgage
3. Rates fixed for the entire term starting from 3.15%*
4. Some French products are capped at 1% above the initial rate, to give you more security
5. 100% LTV French mortgages with capped rates starting from 3.50%** .
|Rate type||Interest rate***||Maximum LTV||Monthly repayment for €100,000 over 15 years|
|Variable Interest Only||3.15%||80%||€262|
|Fixed Interest Only||2.95%||65%||€246|
|Capped Repayment||3.50% capped at 4.50%||100%||€715|
* Over a short term of 6 years on a repayment basis, for a loan of or above €230,000
** You would only be expected to pay the Notaire fees and the estate agent’s fees. Available only for properties of over €300,000
*** Higher rates may be applicable for longer terms and different loan amounts
For more details regarding French mortgages, you can have a look at our website dedicated to French mortgages: http://www.sextantmortgages.com
If you would like to receive a free quote with no obligation, contact our in-house mortgage consultants by telephone: 0207 428 4918 or by email: [email protected]