Thursday, 29 January 2015 17:16

Save 1000's on your French mortgage

Written by  Joe Wroe
Deciding to finance your dream home now could save you just shy of £50,000. A recent year on year comparison of the best rates available to non-resident purchases has seen large movements in your favour for both the interest rates for French Mortgages and the exchange rates for converting your Sterling to Euros.

Take a standard €250,000, fixed rate, repayment mortgage product from January 2014; the interest rate you would have fixed over 20 years would have been 3.75% making your monthly repayments €1,482. The Identical product today has a much more favourable interest rate of 2.9% (almost a whole 1% cheaper), which would make your monthly repayments over the 20 year term €1,375. When this is combined with the Sterling to Euro exchange rate which recently tipped over €1.30 for each £1, the sterling equivalent of your repayments will have dropped from £1,235 to £1,049.

If you take the time to calculate the final outcome of this drop in repayments you will reach the conclusion the cost of the identical property one year ago was £44,517 more expensive than it is today.

Get in touch with International Private Finance to find out your borrowing potential and how you could potentially afford the property of your dreams today.

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Article written by Joe Wroe of International Private Finance

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