French Lenders Quick To Pass On Reduced Euribor To Borrowers
News Posted On: 16 April 2012
More good news for anyone thinking of buying a French property this week as the ECB cut the Euribor rate from 1.58% since November, to 0.75%. Of course, this is potentially good news for those buying property anywhere in Europe, but as has been the trend, French lenders have been among the quickest to pass the cuts on to their borrowers.
The Euribor is a base rate governing variable rate mortgages in Europe. French lenders have seized upon the new rates, adding to the number of deals in the 3% range, and complementing these with new 1%-2% best buy rates.
France continues to be one of the most popular places for overseas property buyers at present, as they continue to weigh safety and stability above average returns. This puts French leasebacks near the top of the pile, and alpine ski properties are among the top choices with regards location, as the high prices have caused alpine properties to hold their value well during the volatile times.
Although cash purchases have a high prevalence in the current market, with wealthy buyers looking to put their cash into property having a high prevalence, mortgage lenders also report strong demand for French mortgages.
In an article covering the Euribor news, Mortgage Introducer.com's Clare Nessling writes:
“France still accounts for the biggest number of mortgage enquiries we receive, and that shows no signs of changing. The country has become an increasingly attractive investment option, not least because of low interest rates, easy access from the UK and good rental yields, but also due to some great property prices because of a slower market. Which means that there are many motivated vendors who are willing to accept lower offers. And because the euro has become weaker against the pound, you can get more for your money at the moment.”
View property for sale in France
Written by Les Calvert
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