Wednesday, 05 June 2013 18:09

Mortgage rates reach historic low

Written by  Vicky Leigh for Complete France

Vicky Leigh shares the low-down on the latest mortgages rates in an article on the Complete France site.

Mortgage rates available to British buyers of property in France have reached their lowest level for almost 70 years.

A decline in the number of transactions and the ongoing economic concerns across Europe have prompted lenders to make significant cuts, helping mortgage rates to reach historic lows. The best deal on a 20-year fixed-rate mortgage is now 3.35%, and 2% on a 30-year tracker mortgage. These rates are 0.25% below previous lows, last seen at the end of World War II.

“These rate decreases point to the sharp competition in France on the domestic market. There are fewer clients, so there is pressure to compete on rates for the best clients buying the best property,” comments John Busby of French Private Finance. “I certainly think these rates will attract buyers to the market. However I also think that a real upturn in the numbers of international buyers will be seen once the pound improves past 1.25 again.”

Combined with the current trend of falling house prices across the Channel, many experts have declared that conditions are currently ideal for a French property purchase.

“Now is certainly one of the best moments for those seeking to buy a property in France,” observes John Busby. “The combination of ultra low rates and soft property prices mean that there are extremely good deals to be had.”

Full article can be read on the Complete France site

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