November French Mortgage Update

Interest rates are at their lowest ever rates for the last sixty years. Set in motion back in the spring of 2009, the revival of the French mortgage loan market continues. So far for the whole of 2010, the sector should progress in the order of 25%.

These estimates from the Observatoire de la production de credits immobiliers (a mortgage watchdog) were unveiled during a conference organised by the financial establishment Credit Logement and the opinion poll institute CSA.

French banks will have granted something between 145 to 150 billion Euros of mortgages to individuals this year, which represents an average of 147,50 billion Euros, 23.5% more than the 119,45 billion of last year.

Thus mortgage loans which had receded by 15% in 2009 should return to the levels of 2008 (141.19 billion Euros). The sum total anticipated is still inferior by more than 13% to the record 170,23 billion Euros achieved in 2007. According to the mortgage watchdog this does however signify the end of the curbed growth scenario.

This means now more than ever is the perfect time to take out a fixed rate French mortgage, at their lowest ever rate.

Best French Mortgage products currently on the market
1. Interest only mortgages with variable rates starting from 3.15%
2. Rates starting from 2.20% for equity release and re-mortgage
3. Rates fixed for the entire term starting from 3.15%*
4. Some French products are capped at 1% above the initial rate, to give you more security
5. 100% LTV French mortgages with capped rates starting from 3.50%** .

Rate type Interest rate*** Maximum LTV Monthly repayment for €100,000 over 15 years
Variable Interest Only 3.15% 80% €262
Variable Repayment 2.20% 80% €652
Fixed Interest Only 2.95% 65% €246
Fixed Repayment 3.55% 80% €717
Capped Repayment 3.50% capped at 4.50% 100% €715


* Over a short term of 6 years on a repayment basis, for a loan of or above €230,000
** You would only be expected to pay the Notaire fees and the estate agent’s fees. Available only for properties of over €300,000
*** Higher rates may be applicable for longer terms and different loan amounts
For more details regarding French mortgages, you can have a look at our website dedicated to French mortgages:

If you would like to receive a free quote with no obligation, contact our in-house mortgage consultants by telephone: 0207 428 4918 or by email:

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This entry was posted on Tuesday, November 2nd, 2010 at 9:21 am and is filed under French Mortgages . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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