Mortgage interest rates in France

[Nickndrachael]

We are in the process of arranging a mortgage for a property in France, and I'm surprised how high the interest rates seem to be, given that the central bank interest rate is so low. EURIBOR plus 1.9% has been quoted. In the UK, the mortage rate is typically 0.5% above base rate.

We're needing to borrow a relatively high amount of the property value, but even so the rates are high. Are there any good sources of mortgage info?

[Teamedup]

LAST EDITED ON 10-Mar-04 AT 12:10 PM (GMT)

Variable around 3.5%. Fixed is negociable and can be between 4 to 5%. The frais de dossier are variable too.

If you say open with www.tiscali.fr there is a mortgage hunter on that page usually.

Also remember that you cannot use over 33% of you income to repay all your loans.....personal ie cars, credit cards etc and mortgage included.

[Richardbk]

Never believe the first rate you are quoted. You must get a written offer from one bank and take it to another and ask them to better it, then take it back to your own/original bank. Your'll b e surprised how much flexibility there is in rates. Also check the differences in insurance premiums - these can vary a lot.


regs

Richard

[Fontremy]

If you can get a variable rate of 0.5% above base in the UK you are doing very well. Typically they are 2% plus above base. Typical French rate is around 3.5% at the moment, which is pretty good and definitely better than you will get in the UK.

[Lollie]

Abbey National FRance have just quoted Euribor plus 1.2 for our mortgage. Also if you go via an introductory source the arrangement fee was cheaper!

Lollie