​French mortgage rates starting to increase, but great value opportunities still available

14 June

Over the last six months mortgage rates in France have been at all time lows. This, combined with the softening of prices following Hollande’s 2012 appointment and subsequent taxation changes, has resulted in investors and second home buyers snapping up properties in France.

Yet now with 10 year bonds increasing, mortgage rates appear to be turning too. “As we predicted in June, fixed rate mortgages are now going up,” said John Busby at French Private Finance. “Tracker rate mortgages should remain unchanged for the time being but the main lenders have increased their rates by up to 0.50%.”

“Despite the increases, these rates still represent excellent value as the French government can borrow 10 year money at 2.50% and so the banks margin is only 0.50% on that rate.” 

So with mortgage rates starting to increase and property prices remaining attractive for the time being, perhaps now is the time to be investing in French property.

- Added to shortlist

- Removed from the shortlist