Market Update

2024’s finale is upon us (already!?). 

It feels like 2024 has been a rollercoaster of emotions at times, filled with ups and downs in a busy economical and political year (how many elections were there?). The highs and lows followed us in sports too with yet another loss in a final by the boys in white followed by a great Paris Olympic Games. 

But what I will remember from 2024 is how we started it vs. how we finished it. 

The inflation in the UK was around 4% in January 2024, it has been marked at 2.3% in October 2024. In France, the inflation rate went from 3.13% to 1.10% (data from September). And the predictions show a lower inflation rate in 2025. It should be a relief for many households out there and should boost the market for properties.

The mortgage rates in France were close to 5% fixed for 20 years in January. We are now getting closer to 4% as an average.

The ECB is expected to cut their rates again tomorrow on December 12th. Some experts believe that the rates could be cut by 0.25% for the next 5 meetings, though others believe that the ECB will be cautious in their future announcements in order not to lose face (source – article from MorningStar).

Our main lending partners have reduced their rates the past few weeks and this very morning and I believe that it is only the beginning. 

French banks seem to be also inclined to improve their (heavy?) process and some are now finally able to accept electronic signatures (which should save the Amazon Rainforest at the very least). 

I am quite hopeful for 2025 and I will continue to bring you the best mortgage deals that fit your needs!

LTV update

We are able to offer up to 85% LTV for repayment mortgages, with a fixed rate up to 25 years but the average LTV is closer to 75%.

It is safe to assume a deposit around 35% minimum all fees included.

Rates update

I mentioned in the last newsletter that we were hoping that the rates would go down in the last quarter. Well, it took time but they did finally! French mortgage rates are now available between 3.65% to 4.10% fixed for 20 years on a repayment mortgage. There are different criteria and eligibility factors so please contact us for more information.

Hopefully Santa has received my letter and will grant us even lower rates for 2025!

Let’s take a break

Private Finance Group will be on ‘’save power’’ mode from December 23rd to January 2nd 2024.

So for now, I wish you all a Merry Christmas and hope you have a great holiday season!

As ever, we are here to assist and look forward to hearing about your project.