French euro mortgage rates fall again
International mortgage specialist Offshoreonline.org is reporting a further fall in French euro mortgage rates, with variable rates now available to borrowers from just 2.30%. This latest cut follows a reduction in interest rates by the European Central Bank.
The French mortgage market has traditionally enjoyed a wider choice of product type than the UK, with short and long term fixed, capped and variable rate loans all available.
British buyers, both UK and overseas based, were recently reported to have regained the top spot as overseas investors in French property. One in four foreign property buyers was British in 2013, a rise of 5% over the past two years. British buyers are comfortably ahead of Belgian, Swiss and Italian buyers, who make up the next biggest groupings.
Whilst the most expensive parts of France remain Paris, the ski areas and the Cote D’Azur, Brit buyers have shown themselves to be canny, securing far better value in the more rural parts of France, dominating purchases in the Loire, Charente and Limousin areas, accounting for between 70% and 80% of all foreign transactions here.
French house buyers are typically faced with a wider range of options than UK international mortgage buyers and in general, deposits are far lower than those required for the UK. The lowest deposits start at 15%, whilst for those looking to purchase in the UK, it is generally around 25%.