French expat euro mortgage rates fall again

Long term fixed rate euro mortgages to buy a new home or releasing equity have fallen again, reflecting the ultra-low level of Euribor, the European Central Bank reference rate.

Fixed rate euro mortgage loans for periods of 15 years or more have dropped by 0.1% and are now available from 3.40%, while shorter term fixed rate euro mortgages are available from 1.80%. Variable rate euro home loans, which track 3 month Euribor, can cost as little as 2.20%, with 3 month Euribor currently averaging around 0.09%.

Buyers in France have traditionally enjoyed a far wider range of mortgage options. According to Guy Stephenson, a spokesman for expat euro mortgage specialists Offshoreonline.org, “Expat mortgage clients in France have a far wider choice of product than buyers in the UK – long and short term fixed rates, capped rates and traditional variable rate loans are all available with deposits from just 15%, compared to the minimum of 25% required for an expat mortgage in the UK.”

Meanwhile, the pound continues to trade at higher levels against the Euro, with one pound sterling buying €1.26 euros, as again the figure of around €1.20 at the start of 2014, giving buyers a near 5% discount on prices in France, Spain, Italy and elsewhere in the Eurozone.

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