January French Mortgage Update

Real Estate Credits- is this the moment to benefit from?

 


.–> What’s going on currently?
The latest updates show that individuals are not having as much trouble finding financing as was previously supposed. Indeed, interest rates have kept dropping all year, until December

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–> But for what results?
Taking a loan out is now easier for any individual, but also for the Real Estate market. For the latter, we can therefore assert that they have started to see the light in the economic crisis fog because the mortgage engine is working once again.
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–> In this case, is this profitable?
Definitely! If you are considering a fixed rate French mortgage at its lowest rate ever, it is high time for you to take a loan out.
You can check the rates out below:

Rate Type Interest Rate Maximum Rate Monthly repayment for €100,000 over 15 years
Variable Interest Only 3.40% 80% €283
Variable Repayment 2.40% 80% €662
Fixed Interest Only 3.30% 65% €275
Fixed Repayment 3.85% 80% €732
Capped Repayment 3.25%+1% 100% €702

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–>
But be careful, things change rapidly!
Since the end of 2010, rates have picked up slightly but not to a worrying extent. As an example, if you borrow the sum of £150,000 over 20 years – i.e the Real Estate credit in France – an increase from 3.50% to 3.80% is equal to an increase in £23 a month. But despite the little rise, rates remain more profitable compared to 2008
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–> What are the long-term consequences?
Unlike before, rates will increase in the long term. They will keep increasing on account of the States’ incertitude in mastering their deficit as in Portugal and Ireland. It is merely a temporary problem.
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–> Will 2011 continue as 2010 ended?
As banks get to pursue new customers in the economic recovery and also through Real Estate credit, current conditions remain profitable for borrowers. Let’s not forget that this increase is based on the lowest interest rates of all-time since the end of WWII.
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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: mortgages@sextantproperties.com

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This entry was posted on Friday, January 7th, 2011 at 2:51 pm and is filed under Bank account, Currency exchange, Finance, French mortgage, French taxes, Money transfer, Real estate market . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


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