French property has always been one of the most popular destinations for overseas property hunters, thanks to the country’s lifestyle, culture, stunning coastlines and beautiful countryside. In the last year, though, that popularity has soared, thanks to historic low mortgage rates.
In October 2013, the country became the second most popular destination on TheMoveChannel.com and remained so for eight months in a row, until June 2014. As Spain and Portugal climb in appeal, France continues to hold onto its (fourth) spot in the portal’s top five destinations.
Now, though, rates have fallen again. 20-year fixed rate at 3.10 per cent and 25 year fixes for 80 per cent of the purchase price were available from 3.50 per cent for non-resident buyers last week, as the TEC 10 index tumbled to another record low of 1.22 per cent.
“These are now officially the lowest rates we have seen for French mortgages this century or last,” notes French Private Finance .
“These record low rates have mainly been driven by the crashing of long term government bond yields across Europe,” explains Private Clients Director John Luke Busby. “10 year bond government bond yields are now also at historic all-time lows. Investors are now lending to the German government at 1% for 10 years and perhaps feeling like they got a good deal.”
“Of course it is all relative to the risk one has in the market,” he adds, “but it is going to take some serious work by European Governments and Mario Draghi to raise sentiment for growth, though it is nothing a good dose of QE wont help to sort out. In the meantime those looking to buy French property can lock in incredible value at these current rates.”