May 4, 2012
-- As the summer months approach and the property buying season kicks off, purchasers will be glad to know that French mortgage rates are on their way down.
Aside from the obvious fact that it is cheaper to borrow, lower interest rates also mean that purchasers buying potential increases as lower monthly payments equate to lower debt to income ratios thus increasing the amount purchasers can borrow.
In April 2011 a 25 year fixed mortgage cost around 5.15%, now a year later rates are typically 4.20%. In monetary terms, the mortgage payment has decreased from 1186.72 Euros for a 200 000 Euro mortgage to 1077.88 Euros, a saving of 1 306.08 Euros per year which could effectively pay for another trip to your French property each year!
This is great news all round and may mean that the dream home you had your eye on is now affordable.
For more information and for personalised mortgage advice please contact French Mortgage Direct on 0800 530 0673 or visit www.frenchmortgagedirect.com