Interest rate and exchange rate outlook from Moneycorp

One of the first letters received by Britain's new chancellor came from Mervyn King, governor of the Bank of England and guardian of the nation's 2% inflation target. The governor must write an open letter of explanation and intent if inflation strays beyond a range of 1% - 3%. In April it was 3.7% so he put pen to paper. Two years ago or more the solution would have been simple; raise interest rates to dampen demand and bring inflation back into line. In the modern post-financial-crisis world with political uncertainty at home, fiscal anarchy across the Channel and low levels of economic growth in developed countries the decision looks less straightforward, especially as the Bank sees this inflation upturn as only a temporary blip.Although inflationary pressures in Euroland are less severe...

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Rates for French remortgages and French equity release mortgage rates

Remortgaging or releasing equity from your property in France can be an interesting as the process is quite unusual. There are a variety of reasons why refinancing an existing mortgage in France is not a common occurrence and subject to different rules and procedures from those in the UK. One reason is the existence of mortgage registration tax in France of approximately 1.5% when you bought your property. Every time the notary registers a charge against a property there are some transaction fees and taxes, which in the case of a French remortgage are called ‘frais de main levée’, literally cost to take the hand off, and then some fees to register the new mortgage amount for the new bank. Overall the fees for remortgaging your French property will be in the region of 2.5%, which depending...

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French mortgage rates 2010-2011: What next?

French mortgage rates have been relatively stable now for over a year. The only changes in the overall rates coming from changes in bank margins or if banks change their initial rate, also known as a teaser rate. So with all the turmoil in France over the huge deficit in Greece, what is the outlook for rates for mortgages in France?French mortgage rates are based on the rate set by the European central bank which currently stands at 1%. As the EU only has one interest rate for all 16 member states, it cannot adjust the rate to help those countries that are worse off. So when considering which way the rates for mortgages in France will go, we have to look at what is happening across the EU.The main factor affecting the ECB rate from which we get the current French mortgage rates, is the situation...

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French Mortgage calculator

Using a French mortgage calculator can give you a good understanding upfront of the likely cost of your mortgage in France. One question I have whenever am looking at calculators for mortgages in other countries is what is the likely rate going to be and what percentage of the property price am I going to be able to borrow. This is why on our French mortgage calculator page offers a handy idea of what the French mortgage best buys are for a range of purchase options from a classic second home mortgage to French leasebacks and Equity release options. With this information it is easier to get a top level understanding of what the likely loan payments will be on the mortgage and can help to inform you in your search for the right property and the right finance.However, French mortgage calculators,...

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