French Mortgage rates – a record low
Everything is still in your favour as a UK resident wanting to purchase a property in France. Currency is moving in the right direction and Mortgage rates in France are at some of the lowest since records in France began in1964 with the average rate for July recorded at 3.39%.
For the first time since 1964 over half of the mortgages secured are at a rate lower than 3.5%.
Since November 2008 the average mortgage rate has dropped by nearly two base points which has significantly stimulated the property market. Interestingly the average loan terms have also fallen to 17 years and four months.
The amount loaned by French banks has increased by 17% over the same period in 2009 but is till far short of the record amount loaned in 2007.
Since the end of the 1990s house prices have risen 140% and since 1964 an amazing 22 times, well ahead of the rate of inflation. According to Les Echos property prices in the first 6 months of 2010 increased by 8.5% – still only re-confirms the typically solid performance of the French property market in 2010.
Source: A study published in Le Figaro
 |
|
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.
