Interest Rates

[Paula T]

Hi, Can any one advise what the current interest rates for a mortgage in france is at the moment? and which companies are the best to deal with, with the best offers?

Thanks Paula

[Frenchmortgagedirect]

Hi Paula,

There are plenty of offers on the market at present, with some low "teaser" offers, so remember not to just look at the initial starting rate of the mortgage, but all of the costs involved.

Things you should consider for variable or tracker mortgages are:
- what is the revision rate (ie. is it linked to the Euribor 1 month, 3 month, 12 month etc) and what is the lenders margin (ie. 1.1% above Euribor X month, 2% above Euribor X month). The revision rate will make a big difference so its very important to know this as you'd be upset if your rate suddenly shot up after the initial period!

- what are the early redemption penalties involved? Note a lot of French mortgages have them but some don't.

- what are the lenders arrangement fees?

- what is the brokers fees? Some brokers charge to process your mortgage as well as earning a commission from the lender. You should ask how much they charge upfront.

- what is the monthly insurance cost for the mortgage? This varies greatly from lender to lender and can have a huge impact on the overall amount you have to pay each month.

There are other things as well but the above is a summary of how to find a good mortgage.

For information, rates are as low as 4.75% for a long term fixed at the moment. To get a good idea of rates available it would be good to know your criteria.

Best of luck

Sharon

[Benjamin]

I came across this site in an English language newspaper (French published).

It purports to give "best buy" tables which we're used to seeing in the UK. It is however run byInternational Private Finance Ltd. which looks like a commercial company in that particular field so I can't vouch for how independent it is.

The site is www.frenchmortgagebestbuy.com. I have no commercial or any other interest etc. etc., in fact I haven't even visited the site as thanfully our mortgage days are over.  [:D]

[Ron Avery]

I wonder how long Frenchmortgagedirect has been lurking just waiting to make their first post?  How lucky they joined the same day as a post was lying unanswered from a poster who had a question they could answer and give chapter and verse on,  you wouldn't believe it unless you saw it with your own eyes[:P] 

[AnOther]

The pursed lips and wagging finger of a milk monitor surely cannot be far away............[Www]

[Cat]

Erm, but they didn't join on the same day, or even post on the same day.  Have you never heard of Google alerts? 

http://www.google.com/alerts

Purse, purse, wag, wag [Www]

[Ron Avery]

No they didn't clumsily worded and now rectified, I will be getting lines from the milk momitors to do!!

[Belle]

Actually Ron, keeping with your thread of thought, you don't think that Sharon and Paula work in the same office do you, maybe it's a set up, how will we know? I agree with you, how convienent, or are we just suspicious s--ds.

[Kitty]

If the answers are informative, there should be no issue.  It's a useful question and an interesting and expert answer.

[Ron Avery]

What and the mortgage business had taken a down turn and the budget for advertising cut so every opportunity taken for a freebie.......   Naaahh perish the thought, that would be tooo cynical[Www]

[Paula T]

Hi, I would just like to confirm i do not know or even heard of the company that replied, i am basically about to visit france in june on a house hunting trip and there is lots of questions i have. mostly about the finance side of things Its a scary move to make when at the moment the news is full of doom & gloom credit crunch etc.. I wouldnt like it if i couldnt get any further advise if people think iam only on to sell a product of any kind. Even after reading the reply I am still non the wiser, but maybe they have seen my question and jumped on it.  

Paula X

[Gastines]

Paula. Bonne Chance with your search for house/home and possible mortgage. Not everyone on here is a miserable cynical person, many of us enjoy life,enjoy France and try to help if possible.

Bit bored,no Coronation Street tonight.

Regards.

[Ron Avery]

[quote user="Gastines"]

Paula. Bonne Chance with your search for house/home and possible mortgage. Not everyone on here is a miserable person,.

Regards.

[/quote] some even have a sense of humour even when on Corrie withdrawals[:P].

Sorry Paula many apologies, it was all meant in jest, and nothing was meant to infer any tie up between you and the mortgage broker, Benjamin actually recommended them as a contact so they cannot be all bad[:P]

I just wondered how long they had been lurking looking for a post like yours to arrive.......  Like a Pike lurking waiting for a little roach to swim downstream[:D]

[lorna]

Hi Paula,

Welcome to the forum! Love your post and style of writing [:)]. Stick with the forum, there are lots of knowledgeable and helpful people here. AND whatever you do, don't read the thread on 'English'.

Good luck. [:D]

[Frenchmortgagedirect]

Please before attacking surely it would have been polite to drop me a polite email? I didn't mean to offend anyone.

I was visiting the forum regarding something completely different (the Lyon forum) and whilst browsing I noticed Paula's question. As a mortgage broker in France, I thought that I could offer some useful information as so many people just look at the starting rate and nothing else.

If I was just lurking waiting to see such a question and was trying to gain business then I would have just put the lowest rate possible and not explain how to find the best deal! Unfortunately thats how most people gain business, not by being honest and explaining the full picture which I did in my post.

I believe that my post is useful to everybody looking for a French mortgage and is helpful when comparing rates from different brokers or lenders.

I can assure you that I don't know who Paula is, I was just trying to be helpful.

Paula, I am sorry to have started such a scandal! When you're looking for a mortgage I hope you find the information useful.

[AnOther]

Fair enough they didn't link to their site (which is in UK and for UK residents BTW) but I think I've seen less overt 'advertising' edited.

Not my place to judge though............[Www]

[Paula T]

Hi Sharon,

No worries, I am grateful for the advice. Hoping to pop along to Harrogate at the weekend to gain a bit more knowledge.

Paula x

[Jo Cowling]

Hi everyone, this seems to have created quite a stir!

Well, I work for International Private Finance – I saw these posts and thought it would be better to clear things up.

Yes, we are an overseas mortgage broker, and France is one of our biggest markets, but we are completely independent and work with all lenders who we consider to offer good products and good service to our clients. We came up with the idea of publishing online best buy tables, similar to those seen in the UK press, as an informative way of keeping people up to date on the current rates available in France – as French lenders to not make these widely available and it can be hard to find current rates online. These rates come from a variety of lenders and are all up to date and currently available. We do make a small charge on application, but a chat and a quotation are always free of charge, and we make no further charge to clients on completion.

I hope this helps.

[Jacqui Too]

[quote user="Ron Avery"]

 Benjamin actually recommended them as a contact so they cannot be all bad[:P]

[/quote]

Actually Ron this is what he said [:)]:

[quote user="Benjamin"]

I have no commercial or any other interest etc. etc., in fact I haven't even visited the site as thanfully our mortgage days are over.

[/quote]

[Benjamin]

[quote user="Jacqui Too "][quote user="Ron Avery"]

 Benjamin actually recommended them as a contact so they cannot be all bad[:P]

[/quote]

Actually Ron this is what he said [:)]:

[quote user="Benjamin"]

I have no commercial or any other interest etc. etc., in fact I haven't even visited the site as thanfully our mortgage days are over.

[/quote]

[/quote]

Gawd strewth Jacqui Too I turn me back for two minutes and I'm being misquoted by all and sundry.  [Www]

I'll be all over the tabloids tomorrow morning. Don't tell Mrs Benjamin.  [:P]

[Benjamin]

Welcome to the forum Jo Cowling.

Many of us are aware that UK "Best Buy" tables are not always what they appear to be in so much as some table compilers have been charging a fee to include companies in their tables.

It's up front and honest of you to say that you work with all lenders who we consider to offer good products and good services.... In other words these are not a complete listing of all lenders but only those you deem meet your criteria.

Just for the record I will say again that I do not have any interest etc. etc.

[Jacqui Too]

[quote user="Benjamin"][quote user="Jacqui Too "][quote user="Ron Avery"]

 Benjamin actually recommended them as a contact so they cannot be all bad[:P]

[/quote]

Actually Ron this is what he said [:)]:

[quote user="Benjamin"]I have no commercial or any other interest etc. etc., in fact I haven't even visited the site as thanfully our mortgage days are over.[/quote]

[/quote]Gawd strewth Jacqui Too I turn me back for two minutes and I'm being misquoted by all and sundry.  [Www]

I'll be all over the tabloids tomorrow morning. Don't tell Mrs Benjamin.  [:P]
[/quote]

I was contradicting Ron not agreeing with him[Www]

[Sprogster]

The best advice I can give at the moment if you are looking for mortgage finance, is wait for six months if you can, as now is not exactly thes best time with the principal French banks such as Societe Generale and Credit Agricole in the merde from the sub prime crisis.

Whereas six months ago banks were falling over themselves to lend money, at the moment the main challenge is to find a bank that is willing to lend at all, especially where second homes are concerned.

At the end of the day getting the most competitive interest rate will depend very much on your credit profile and do keep an eye on for the escalating bank arrangement fees which have ballooned in recent months.