+7 495 744 00 39

Mortgageconditions in France

In the last months of 2013 mortgagerates in France were steadily decreasing.

In August, month of holidays, interest rates of mortgage credits in France remained at minimum historical values. Floating rates are available starting from 2,1 % per annum, and the fixed credit rate for 25 years period makes 3,5% per annum.

These conditions are available for non-residents, Russian-speaking buyers of real estate in France, and together with opportunity of obtaining a credit in the amount of 70% these credit conditions are still attractive, though there are some specific restrictions for maximumamount of credit in some regions of the country. The mortgagesituation in France is still favorable, but there are tendencies of increasing the rates in the medium term.

We expect some increasingofinterest rates for the French loans in September-October. Such increase ofrates could be caused first of all by increasing of bank margin for the purpose of decreasingown risks of the banks. Meanwhile it is hard to say definitely, but there is a probability of such trend and its further developments in theautumn.

There are some additional factors which should be taken into account when you obtaining a mortgage abroad – continuing decreasingof ruble exchange rate which results in increasingcosts of payments in local currency and cost of service of receiving the loan. The ruble exchange rate from the beginning of the year has decreased by 8,4 % (Bloomberg). Nevertheless the currency risk of Russian private clients is low,because ruble is supported by high oil prices and most part ofclients who purchase real estate abroad have savings in local currency.

Up-to-date interest rates and mortgage conditions for France and Monaco could be found in corresponding sections of the company website. You couldreceive individual consultationabout mortgages in France and Monaco from the experts of our company.