14 August 2015 - Mortgage France News |

What Next For Mortgage Rates in France?

As French mortgage experts, we are forever receiving enquiries about the current level of mortgage rates from people interested in purchasing a property in France. The good news is that, for a long while now, we have been able to reply that rates are appealingly low.

But our shrewd clients and partners generally understand that this is not the most important thing to know about French mortgage rates; what really matters is what those rates are going to do in the future. This is, of course, the million-euro question and there is no straight answer to it. However, here is a quick summary of the key factures that will affect how French mortgages rates may move in the coming months and years:

  • Mortgage rates in France are dependent on the cost of borrowing in the Eurozone. They therefore rise and fall in accordance with how the Eurozone’s economy performs as a whole.
  • Rates have been kept low due to the measures taken by European banks in response to the economic crisis. These measures are ongoing, and will therefore continue to encourage low interest rates, including for mortgages in France. Keep up to date on this with Mortgage France data blast.
  • French mortgage rates nevertheless rose slightly in the second quarter of 2015. This is because of the uncertainty surrounding the Greek economy. Rates in France may indeed rise more sharply if the Greek issue flares up again, but could also drop back down should the situation be completely resolved.
  • In general, the Eurozone’s economic performance has improved in recent times, but at a slower rate than that of the USA or the UK. Any interest rate rises are therefore likely to come sooner in the latter two countries, and could be used as an indication that Eurozone interest rates will also start moving upwards, which would certainly affect the mortgage rates available for those purchasing a property in France.
  • If and when interest rates do start to go upwards elsewhere in the Western World, it will be important to see how quickly they rise. This will also be a useful indicator as to whether French mortgage rates might go steeply upwards over the term of your mortgage.

With French mortgage rates currently at such attractive lows, the expectation is that they must start to rise at some stage. Mortgage France has all the tools available to keep you updated regarding rate movements. Keep an eye on this page for the latest French mortgage news, and check the current rates available on our French Mortgage Best Buy Tables.

Above all, why not speak with one of our expert French mortgage consultants today? As well as offering general information on mortgages in France, they will be able to talk you through the many fixed-term French mortgage options available, which provide an excellent way to protect yourself against any potential rate increases.

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