French Mortgage Rates July – August 2017
A stable record this summer shows the month of August, 2017, to have only a very slight increase in borrowing rates. Contrary to the tradition that summer is favourable to rate increases, these months of July and August at least, have been historically stable.
Stability had already set in and after the month of July it was found to be virtually continuous with the previous 3 months. The August increase, more than moderate, occurred only at the beginning of the month. Moreover, this only applies to loans of over 10 years and 20 years. Conversely, the average rates over a period of 15 years are still stable compared to last July. It should also be noted that only 4 institutions have raised their rates but the choice to do so is not indicative of the majority.
Rates are still low
The very slight rise in August can be seen to be counterbalanced by the banks themselves, wishing to seduce the buyer who presents him or herself. The reason for these – still very low rates – is in fact due to the very small number of files being presented to the banks, yet it also enables happy buyers to finance their purchases in the best possible conditions! This minimal increase therefore, will not affect buyers’ interests in their projects and still encourages purchasers to get started. Similarly, borrowers will again appreciate the opportunity to renegotiate or redeem their current loans.
So, even though rates are rising very slightly, the summer as a whole remains very favourable for borrowers and suggests conditions still advantageous at the beginning of the school year. Indeed, banks that have not fulfilled their objectives this summer, will be encouraged to lower their rates at that time.
Fynis International Mortgages provides a customised mortgage service to international buyers looking for French properties such as a holiday home or rental investment. We are able to offer you a.o. 2.15% fixed rate for 20 years; 1.95% fixed rate for 15 years – both up to 80% of the buying price. Ask here for your personal mortgage calculation.