French Mortgage Broker Rates - January 2021
|Term||Interest Rate||LTV||Fixed / Variable||Type||Minimum Mortgage €||Notes|
|7 Years||2.35%||75%||Fixed||Interest only||200,000||Rate fixed for the term|
|8 Years||2.05%||85%||Fixed||Repayment||100,000||96 identical payments|
|10 Years||2.05%||85%||Fixed||Repayment||100,000||Subject to valuation|
|14 Years||2.35%||75%||Fixed||Interest Only||200,000||Subject to wealth test|
|15 Years||2.10%||75%||Fixed||Repayment||150,000||Minimum age 60|
|15 Years||2.25%||75%||Fixed||Repayment||100,000||Refinance existing mortgage|
|20 Years||2.25%||85%||Fixed||Repayment||600,000||Rate fixed for the term|
|20 Years||2.35%||75%||Fixed||Interest only||100,000||Mixed Mortgage|
|25 Years||2.35%||85%||Fixed||Repayment||100,000||Subject to valuation|
French mortgage rates change fast and often. Because of the rate volatility we survey rates daily to bring you the very best choice. Furthermore, we survey the whole market so our rate table is as accurate as we can make it.
French banks also have additional rules concerning the minimum size of the French interest only mortgage, your net asset position and the source and amount of your income.
For an equity release mortgage, French bank will have additional restrictions concerning your fiscal residence country, net asset position, the source and amount of your income and the purpose for which you are seeking to release equity.
The example rates are only a small selection from the products we offer so if you are looking for the best rate request a free no obligation quotation by completing our online quotation form.
Which Rates Apply To Me?
The rate you will pay will depend on a number of factors, among which the most important to the mortgage lender are:
- Your financial profile
- Your source or sources of income
- The LTV (Loan to Value) ratio of the mortgage
- The initial term of the mortgage
- The amount of the mortgage
- The location of the French property
- The nature of the mortgage product
- Variable Rate
- Fixed Rate
- Capped Rate
- Cap and Collar Rate
- Hybrid Mortgage
- Refinance Mortgage
- Interest Only Mortgage
- Prevailing market interest rates
How Do Banks Calculate French Mortgage Rates?
Variable rates are linked to the Euribor rate with periodic revisions, typically quarterly.
The lender will specify the spread above Euribor in your mortgage offer. The smaller the spread the better the mortgage deal because you can think of it as a bank service charge. The spread also tells you what the long-term cost of your mortgage will be after any introductory period offer. Remember many banks offer a low headline rate for 3 months to win business.
We normally arrange fixed rate mortgages that are fixed for the duration of the mortgage. We can also arrange mortgages that are fixed for an agreed period that will be explained in your French mortgage offer documents from the bank.
Your financial status will determine the best mortgage rate you will be offered. The lender will offer the lowest rates to applicants with the strongest financial status.
Will Your Age Affect French Mortgage Rates?
Age has no direct impact on rates, but it will affect the size of your monthly repayments because it affects how long you can borrow for. Your age may also reduce the lender’s calculation of eligible income.
You will normally need to repay your French mortgage by age 75, though a few will accept repayment by age 80. This will therefore affect the maximum mortgage term the bank will offer you and thus the amount of your monthly payments because the shorter the term the higher the monthly repayment.
As you approach retirement age French banks will, on a tapering scale, discount your earnings to reflect the level of income you will be going to receive from your pension. If you presently have a high income and are, say, 10 years from retirement a French bank will reduce the amount of eligible income that it will use to calculate your DTI (Debt to Income) ratio. By law, for most cases, French banks will limit the size of a mortgage so that the borrower’s DTI will not exceed 33%.