Following on from last month’s rate reductions, many French banks are now also passing on the recent falls in the main index rates in France. The increased drive to attract new customers could be attributed to the reduction seen in the volume of transactions entered into in the first quarter. Many commentators in France also point to the forthcoming presidential elections in France as having an effect, as would be buyers and investors put projects on hold until the result is known. In any case, those who began their applications recently on the basis of higher rates can now enjoy rates as much as 0.60% lower than January. A 20 year fixed rate now goes for 4.25% at 80% LTV.
The main ECB rate still stands at 1% with the 3-month Euribor for variable rates coming in at 0.80% and the TEC 10 for long term rates at 2.90%. These are extremely low rates historically and well worth locking in with either a long term fixed rate or tracker mortgage with all increases capped to 1% for the life of the mortgage.