French mortgage rates fall to record lows16 June
1 British pound equals today 1.10 euros. If this fall of the UK pound might be seen by some Britons investing in the French property market as a disincentive to investment, many take advantage of record low French mortgage fixed rates to maintain their power purchase in France.
French mortgage fixed rates now start from below 2% for the first time which is “unprecedented for modern times”, according to John Busby at French Private Finance.
These low rates, added to a modest rental yield of 3-4% allow buyers to cover their interest payments and balances the change in exchange rate.
Busby highlights the ideal position for buyers using USD. The combination of low interest rates and a very favourable currency creates optimal buying conditions.
Far from being a drawback, the low borrowing rates are thus reinforcing the demand on the French property market, namely in Paris and in the Alps. Learn more about our properties in Paris and in the French Alps.
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