Interest Rates

Finding/Owning French Property

Interest Rates

Paula T 09/05/2008, 19:16

Hi, Can any one advise what the current interest rates for a mortgage in france is at the moment? and which companies are the best to deal with, with the best offers?

Thanks Paula

Re: Interest Rates

Frenchmortgagedirect 13/05/2008, 16:32

Hi Paula,

There are plenty of offers on the market at present, with some low "teaser" offers, so remember not to just look at the initial starting rate of the mortgage, but all of the costs involved.

Things you should consider for variable or tracker mortgages are:
- what is the revision rate (ie. is it linked to the Euribor 1 month, 3 month, 12 month etc) and what is the lenders margin (ie. 1.1% above Euribor X month, 2% above Euribor X month). The revision rate will make a big difference so its very important to know this as you'd be upset if your rate suddenly shot up after the initial period!

- what are the early redemption penalties involved? Note a lot of French mortgages have them but some don't.

- what are the lenders arrangement fees?

- what is the brokers fees? Some brokers charge to process your mortgage as well as earning a commission from the lender. You should ask how much they charge upfront.

- what is the monthly insurance cost for the mortgage? This varies greatly from lender to lender and can have a huge impact on the overall amount you have to pay each month.

There are other things as well but the above is a summary of how to find a good mortgage.

For information, rates are as low as 4.75% for a long term fixed at the moment. To get a good idea of rates available it would be good to know your criteria.

Best of luck

Sharon

Re: Interest Rates

Benjamin 13/05/2008, 16:51
I came across this site in an English language newspaper (French published).

It purports to give "best buy" tables which we're used to seeing in the UK. It is however run byInternational Private Finance Ltd. which looks like a commercial company in that particular field so I can't vouch for how independent it is.

The site is www.frenchmortgagebestbuy.com. I have no commercial or any other interest etc. etc., in fact I haven't even visited the site as thanfully our mortgage days are over. Big Smile [:D]

Benjamin

Snips, snails and puppy dog tails

Re: Interest Rates

Ron Avery 13/05/2008, 17:29
I wonder how long Frenchmortgagedirect has been lurking just waiting to make their first post? How lucky they joined the same day as a post was lying unanswered from a poster who had a question they could answer and give chapter and verse on, you wouldn't believe it unless you saw it with your own eyes Stick out tongue [:P]

Why not post a sensible answer, people will appreciate it more

Re: Interest Rates

ErnieY 13/05/2008, 17:40
The pursed lips and wagging finger of a milk monitor surely cannot be far away............ Whistles [Www]

My doctor said one drink per day, I can live with that !

Re: Interest Rates

Cat 13/05/2008, 17:48

Erm, but they didn't join on the same day, or even post on the same day. Have you never heard of Google alerts?

http://www.google.com/alerts

Purse, purse, wag, wag Whistles [Www]

Cathy

Sun, sun, sun, here it comes...

Re: Interest Rates

Ron Avery 13/05/2008, 17:58
No they didn't clumsily worded and now rectified, I will be getting lines from the milk momitors to do!!

Why not post a sensible answer, people will appreciate it more

Re: Interest Rates

Belle 13/05/2008, 18:37
Actually Ron, keeping with your thread of thought, you don't think that Sharon and Paula work in the same office do you, maybe it's a set up, how will we know? I agree with you, how convienent, or are we just suspicious s--ds.

Re: Interest Rates

Cathy 13/05/2008, 19:13
If the answers are informative, there should be no issue. It's a useful question and an interesting and expert answer.

Cathy
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Your children won't remember you ironing their pyjamas but they will remember you reading them a bedside story.

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