Lenders drop home loan rates in France
French property owners will be pleased to hear of lower monthly mortgage payments heading their way.
Following the unexpected decision by the European Central Bank to leave the interest rate at 1.5 per cent throughout the eurozone several French mortgage lenders reduced their mortgage rates on both fixed rates and variable.
Unlike many other European countries French mortgage lenders have tended to be more reserved in their lending practices which is partly why France has escaped the debt crisis relatively unscathed when compared to the likes of Greece and Spain.
Competition is strong among the country’s banks to gain a larger share of the mortgage market among the domestic market and non residents, there are plenty of mortgage products on offer including 100 per cent deals, variable rates start at less than 3 per cent backed by a 20 per cent deposit and a fixed rate for the full 15 year term is on offer at just 4 per cent.