French mortgage rates bounce back

Cap Ferrat, on the Riviera Photo: Chris230

French mortgage rates have begun to bounce back, after three years of falling to record lows.

French mortgage rates have been at historic lows in the past year, making the country's property more attractive to overseas buyers looking to take advantage of affordable prices.

Now, though, rates have begun to increase once more, following a trend set by 10-year government bonds. Government bond rates around Europe recently stood at approximately 0.5 per cent, but in May 2015, the rate doubled to 1 per cent, which experts forecast could prompt a similar rise in mortgaeg rates.

As of June 2015, 15 national and regional banks have increased their lending rates by anything from 0.05 to 0.3 per cent depending on the institution, reports French Private Finance.

Only one institution has bucked the trend, slashing rates by 0.2 per cent (except for loans over 25 years) and holding its other rates at the same historic lows.

"Here at French Private Finance we are still finding our clients the best possible products available on the market," comments the broker, "but we are urging those in the process of completing the applications to be a swift as possible."

Indeed, with rates not climbing, domestic and overseas buyers will need to move quickly to take advantage of the best rates possible.