Latest rates for fixed and variable rate mortgages in France decrease

The latest news from France is that rates are decreasing due to competition for mortgages between banks. One of the biggest specialist French mortgage lenders has recently dropped its rates by 15%. This 15% rate drop is anticipate to spread through banks that offer mortgages in France and interestingly the drops apply to both the spreads/margins the bank charges above the Euribor* on the loans and the initial rates.

For the variable repayment French mortgage, the rate which was previously 2.8% and has now dropped to 2.3% with a margin over the Euribor* of 1.3%. For a five year fixed rate French mortgage the rate was 4.25% with the current rate now standing at 3.95%.

These are some of the best rates for mortgages in France currently and also compare very favourably with rates for mortgages in the UK. Having been personally looking for borrowing in the UK recently the remortgaging options where all for fixed rates over 5% and for a variable rate mortgage the spreads/margins over the base rate were all over 2% for a 75% LTV mortgage.

To find out what the latest, best rates are for fixed and variable rate mortgages in France just visit the best French mortgage rates section on the Athena Mortgages website

*The Euribor (Euro Interbank offered rate) is the equivalent of the Bank of England base rate in the UK. Most French mortgage rates are pegged to the Euribor which, unlike the Bank of England base rate, fluctuates everday. Essentially, the Euribor is the rate at which European banks will lend money to each other for period of time e.g.3,6 or 12 months. as of time of writing the current Euribor rates are as follows. 3 month 0.730%, 6 month 1.019% and 12 month 1.254%.

Posted in: French mortgage rates