french mortgage

[David]

Hi

We have had a mortgage with the credit agricole for a couple of years now. We took out a flexible rate mortgage with a flexible payback option. Cuurently we have had two interest rate hikes, in the last one they increased my monthly payments ( by 60 euros) and also added two years to our payback term, I was originally told french banks  dealt with any rate rises only by increasing your payback term, but obviously this is not correct. Has anyone else has a similar experience and any suggestions how I can reduce my monthly payments?

 

David

 

[woody2122]

i have a 10 year fixed rate mortgage with ca  but i think its fixed at 4.35%  or  5.35%  you could try a fixed rate but i expect your only paying 2% euro base rate interest which is better than my rate, if you have a flexible rate mortgage then i expect if you pay more in sometimes then your term will be shorter sometimes

[uncle jules]

hi david ,were in a similar situation as you .its went up twice in a year, they mentioned the euribor rate over 3 months,and our rate is about 6.5 p/c .we thought to that any differance would be sorted out at the end .i checked the euribor rate on line and it was not 6.5 will have to phone tommorow

[woody2122]

If you have a flexible rate mortgage with a french bank, is the rate  set by the european central bank and if so isnt it around 2.5% base rate  so what is the euribor rate of 6.5%

[makeiteasy]

Hi David,

 

the best thing you should do is to refinance your existing loan with a lender who could offer you a fixed rate, otherwise you will going on to support the increase of the rate all years long.[:'(]