French mortgage rates hit record low
UK buyers and investors can also access these historic low rates, which include tracker mortgages available from 2%, according to Athena Advisors.
Spokesperson Nicholas Leach said:
“The European Central Bank has remained stable so these new rates are simply down to the fierce competition between the banks for the best applications. These are the best rates investors have seen for over 65 years so it’s no surprise we’re seeing investors choosing to lock in some long term value in French bricks and mortar.”
The current rates on offer are 0.25% below previous lows which were last seen at the end of the second world war.
John Busby from French Private Finance, Athena Advisor’s sister company which specialises in French property finance, added:
“The cost for a €100,000 loan has now dropped to €572 per month for a fixed rate over 20 years and €502 per month for a variable rate at 2%. If you strip out the inflation element which is currently 1%, then the current variable rates are effectively at 1% and fixed rates at 2.35% in real terms. However you look at it, this is incredibly cheap money.”
Leach continued: “With such low rates it is now much easier for investors to find self-financing properties, especially in central Paris and the Alps. Seasoned investors and buyers understand that these rates won’t be around for long so they’re trying to capitalise now.”