Rates remain low, but for how much longer? Time to start thinking about taking out a French mortgage at one of the lowest rates for over 50 years.
.–> What’s the current situation?
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, all the way until the end of last year.
–> What does this mean for me?
Taking a French mortgage 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 because the mortgage engine is working once again.
–> In this case, is it good news?
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|
|Fixed Interest Only||3.30%||65%||€275|
–>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
–> What are the long-term consequences?
Unlike before, rates will increase in the long term. They will keep increasing on account of the State’s incertitude in mastering their deficit as in Portugal and Ireland. It is merely a temporary problem.
–> 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.
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]