Long-Term Fixed Rates - A shield against interest rate uncertainty
25 Aug 2025
25 Aug 2025
With summer holidays in full swing, our latest newsletter takes a closer look at the shifting economic landscape—and why long-term fixed-rate French mortgages remain an appealing option for borrowers.
In today’s climate, where the direction of global interest rates is far from certain, locking into a long-term fixed rate offers valuable peace of mind. While a further drop in French mortgage rates is not guaranteed, the stability and predictability of a fixed rate still hold strong appeal.
At present, the European Central Bank has signalled it may be nearing the end of its cycle of interest-rate reductions. Yet, broader market forces are at play. Commitments from European governments—including the UK—to boost defence spending in response to the ongoing Ukraine–Russia conflict have put upward pressure on borrowing costs across Germany and the wider Eurozone.
Inflation trends add further uncertainty. In the US, Europe, and the UK, the impact of recent trade tariffs introduced under President Trump is still being debated, with economic data offering little in the way of a clear trajectory.
Against this backdrop, French banks offer a compelling opportunity: mortgage rates fixed for up to 25 years, coupled with relatively low redemption penalties—typically equivalent to just six months’ interest. For clients eager to secure their French property dream, the balance of risk and reward makes this an option worth serious consideration.
25 Aug 2025
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3 Nov 2025
The ECB's decision to maintain interest rates at the same level since June 2025 means rates in France are fairly static.
24 Oct 2025
At IPF we go beyond simply arranging a mortgage. We work closely with you to navigate the often complex French Property buying process, giving you the best chance of success.
30 Sept 2025