18 April 2018 - French Mortgage News | International Mortgage News | Partners News |
French mortgage rates drop and a new interest only product is launched
Following on from our recent article explaining how the French banks are relaxing some lending criteria for non-residents, they are re-affirming their willingness to lend by lowering their French mortgage rates even further. The EURIBOR (the Euro equivalent of the Bank of England base rate) is still negative -0.38%; it is predicted rise before the end of the year, and it’s likely that the mortgage rates will follow but for now there are still fantastic rates available. Certain lenders are now offering a variable repayment mortgage at 1.24%, a fixed rate from 2.15% and an interest-only rate of 2.2%. Check out our latest French mortgage rate table for more information.
In other news, a new product has been launched onto the market this month: a capped variable interest only rate of 2.20%. Previously, the interest only products were only available with an uncapped variable rate, that offered no protection against any interest rate hike. But this new product has the protection of a cap of 1% for the first 7 years. On a loan of €250k, the monthly payments would be €458 and as it’s a variable rate it also comes with no early redemption charge, allowing you to pay it off when it suits you, without a penalty.
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