29 March 2012 - French Mortgage News | Partners News | Uncategorized |
More Exclusive French Mortgage Products…
As the leading broker of French mortgages for non-residents, IPF’s clients currently have access to discounted rates and fees through the majority of French lenders. These exclusive products range from a reduction in arrangement fees from the standard 1% to 0.5%, and in some cases no arrangement fees at all!
A reduction in arrangement fees is not the only cause for optimism. Across the market French banks have been reducing their mortgage rates, providing a major boost to anyone who is currently considering using a French mortgage to finance the purchase of a second home in France.
We saw a reduction in borrowing rates following the ECB’s decision to cut the Eurozone base rate by 0.25% in both November and December 2011, reducing the rate to 1.00%. The Euribor 3 month index (on which may French variable rate mortgages are priced) currently stands at 0.80%, having reached 1.58% in November.
The lending position of the French banks was strengthened with the launch of the ECB’s Long Term Refinancing Operation (LTRO), allowing Eurozone lenders unlimited access to three year loans. The ECB recently made two offers of cheap three-year loans to lenders to boost liquidity on the interbank market and prevent a squeeze of credit amid Europe’s sovereign debt crisis. Loans of €489billion and €529.5billion were taken up by banks in December and February.
All of which means borrowers are currently able to take advantage of lending facilities at lower costs. Coupled with a reduction in the fees charged to arrange such facilities, it is an increasingly appealing time to consider taking out a mortgage to fund the purchase of your French property.
For more information please contact the French mortgage team today on +44 (0)207 484 4600
Found a property? Request a quote now or call +44 (0)207 484 4600