Last month French mortgage interest rates have reduced once more and have reached an historic low level. A few hours ago, as analysts were expecting, the European Central Bank (ECB) has made their monthly decision on interest rates and given the comments that were made by Mario Draghi (The ECB president) to stimulate the Eurozone economy further.
Obtaining a French mortgage at a very interesting rate will be even lower now than it was last month (from 2.5% up to 4.5% in average).
The Eurozone is currently knowing a very good year to compare with the years after the economic crisis. The ECB base rate has been reduced from 0.25% to 0.15%, to compare with 2012 which was more than 1.00% for one month. French banks are currently offering very interesting rates and it won’t change for at least a couple of months. Investing in a French property this summer with a French mortgage is an opportunity to be seized.
According to a study from ‘Crédit Logement/CSA’, “since the end of the 40s, mortgage rates have never been so low”.
As we said, French mortgage rates are presently at historic lows and offer the opportunity to borrow at very low rates: below 3.30% for fixed rate over a 20 year term and 1.95% for a variable rate. With interest in French property picking up (Sextant Network has seen an increase in French mortgage and property enquiries of 50% during the first quarter of 2014) and improving exchange rates to 1.23 (€/£ so back to 2012 & 2008 levels) attest that French properties are becoming reasonably priced.
Property price reduction with French Government reforms
This healthy situation of the economy represents an opportunity for investors; obtaining a French mortgage can be a very useful tool to purchase a property. If you wish to receive free quotes, Sextant Mortgages can evaluate the best options for your French mortgage.
Furthermore, as we have already presented in a recent article, this summer will be a key period to invest in France as French properties price have been reducing for two reasons:
– The increased of transfer duties (taxes collected by a notary on behalf of the French State during the registration of a property sale) in some departments.
– The French government plans to reduce the notary fee so that they reflect a figure closer to the actual price.
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