Individuals are not having too much trouble finding financing, and can borrow at very interesting rates. Indeed for the fourth month in a row, interest rates are at their lowest ever since 1945.
Bricks and mortar are a refuge for those puzzled by the financial markets. The property market has found its colours again partly due to the ease of borrowing. The rates remain low and the credit tap, which had been stifled during the crises is now largely turned on again for solid borrowers.
It is thus possible to borrow around 3% over 15 years at a fixed rate, and 3.55% over 20 years. Financial establishments are now lending to clients who bring only a 10% contribution, or none at all in some cases. The competition between banks plays in the favour of borrowers. The latter, always pragmatic, don’t hesitate to renegotiate their loan with the bank. When they can’t, they look elsewhere.
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]