July 2017 – French Mortgage Transaction of the Month

Rates for a 20-year fixed rate repayment mortgage (the most widely chosen French mortgage product) have now held at 2.15% for six months, since their slight jump in January 2017, up from the lowest levels seen in a hundred years.

This low rate long-term fixed-rate mortgage is available with loan-to-value rates of 80%, which for many British buyers using sterling enables them to marginalise the amount of money exposed to recent currency fluctuations.

This month’s french mortgage transaction of the month highlights just that, where the buyer of a property in the French Alps, who was originally looking at buying a property in cash, in the end decided to finance 80% of the property to hedge their capital against the swing in currency rates.

The property was a €847,000 large two bedroom apartment in Les Gets, with a loan amount of €677,600. By opting for a 20-year fixed rate repayment mortgage the buyer with have monthly repayment amount of around €3,400.