16 October 2019 - French Mortgage News | International Mortgage News | Partners News |

French Mortgage Rates drop and Interest Only Fixed for 14 years is back

rate dropGreat news for borrowers: Almost all the French banks have dropped their French mortgage rates for non-residents this month, with some fixed rates dropping by 0.3%.

The numbers speak for themselves:

You can now obtain a capital repayment mortgage for 85% of the purchase price and fix the mortgage rate at 2.40% for 20 years! Compared to the previous rate of 2.70%, this new French mortgage rate reduces the monthly payments on a €250k loan to just €1,313 and would save you over €8,600 across the lifetime of the loan*. Certain lenders are offering rates on a repayment basis that you can fix for 15 years at 0.70%! However, it is always worth digging deeper than the headline rates, as these ultra-low rates will come with some hidden extras, such as mandatory life insurance or a requirement to place a cash sum of upwards of 20% of the purchase price with the lender for the lifetime of the loan (Read our article on what to look out for in full here)
The news from the French lenders regarding interest-only products is also very exciting: The rates have been lowered to 2.1%, available at 75% LTV for up to 14 years on a variable basis. Moreover, the bank has also brought back it’s 14-year fixed rate interest-only product at 2.45% which was last available back in 2017. On a €250k loan, that takes your monthly payments down to €510!*
Check out our latest rates table and use our mortgage calculators to see what is possible for you – and then get in touch. There’s a strong chance we could still get you into your French property in time for Christmas!

*Based on a €250,000 loan. For further details on what products and rates would be available to you, please contact us directly or submit an enquiry online.

This information should only be used as a guide. The products mentioned here are for non-resident clients, other products will be available for residents. The choice of interest rate and product terms will depend on your circumstances and the amount of the mortgage. Before you make a mortgage application, we will carry out a full review to establish your needs and preferences and if you meet the criteria, we will give advice and make a recommendation to you. There will be a fee for our mortgage service. All mortgages are subject to status. Please note that all products show an indicative rate only and may not be suitable for you. You must be 18 or over.

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