French mortgage transaction of the month

Transaction of the month – a refinanced €284,000 variable rate mortgage transferred to fixed rate of 2.4% for 15 years

With French mortgage rates dipping so low those with existing loans on variable rates have been very very happy. Yet the interesting thing is, instead of riding the wave further to hold out of lower rates, many people are choosing to refinance and switch to a fixed rate to lock in a super low rate for the rest of their repayment period.

October’s transaction of the month was for a refinanced loan of €248,000 on a large apartment in Meribel in the French Alps. The couple bought the property in 2005 and has been on a variable rate of 1.3% over the three month Euribor (which is currently at 0.082%)  and they have taken the bold, and in our opinion, savvy, step of switching to a fixed rate whilst the rates are extremely low.

Of course French rates may dip a little further, but with a rate of 3.0% fixed for the next 15 years they are very comfortable with their property finances and can plan well ahead into the future. We expect to see many more current owners in France with both variable rate and higher fixed-rate mortgages switch to lower fixed rates over the next few months.