26 July 2016 - French Mortgage News | International Mortgage News | Partners News |
French mortgage rates continue to fall
One side effect of the referendum result and good news for any potential French property buyers is that the French mortgage lenders have continued to cut their interest rates further reducing the cost of buying a property in France with a French mortgage.
A number of clients who were originally planning to purchase in cash have contacted us to see whether they can take advantage of these low rates, borrow in Euros and therefore reducing the sterling cost of buying in France.
Long term fixed rate mortgage are very popular in the domestic French market and it is possible to borrow over 25 years at rates from 2.45% at an 80% LTV (This compares to 3.05% for the same product in June 2015).
Capped rates, which provide some protection in the event rates rise, but flexibility to repay the loan early without penalty are available at a starting rate of 2.35% (capped at 1.00% above the starting rate for the first seven years) and an LTV of 85% over 20 years.
French mortgage providers have a strong appetite to lend to International buyers of second homes and the recent reductions highlight the French lenders are keen to support and stimulate the market.
For further information on the options that are open to you contact one of the team on +44 (0) 207 484 4600 to talk through your plans, or request a quote here.
Your home may be repossessed if you do not keep up repayments on your mortgage or other debts secured against it.
Found a property? Request a quote now or call +44 (0)207 484 4600