The recent rate increases and tightening of banking criteria were always going to come after French interest rates reached historic lows last September and we also had maximum LTVs. However, all is not lost as French mortgage finance is still available at 80% LTV for Second homes and Leasebacks at rates far more competitive than those available in the UK.At 80% LTV you have 3.70% capped at 4.70% for the entire 20-year term or alternatively you can fix at 4.35% for 25 years. In spite of the recent rate rise on the 7th July by the ECB, the long term index called the TEC 10 is down 0.25% from its 2011 peak, indicating a softening of the view on long-term interest rates. When you compare these French loans with the comparable UK 5-year fixed rates they are very competitive indeed. The peace of...
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