Although the industry seems to be slowing down after a
record year in 2011, banks are now offering mouth watering rates. In March
alone, about 90% of them lowered their interest rates to attract new customers,
of an average of 0.13 points (first time since mid 2010) and the rest did not raise
theirs. The average rate over 20 years is now 4.20% versus 4.31% in January
2012.
(source: www.meilleurtaux.com)
This exciting move in the industry seems to counterbalance a
forecasted decrease in the number of property transactions. Banks are still
very cautious in their selection and you still need a pretty strong file to be
eligible for a mortgage.
A few tips that will take you a long way:
- - Make sure you have had a stable work situation
and regular revenues for at least a year
- - Have a deposit (at least 10% in order to
finance fees mainly – notary and
guaranty)
- - Avoid overdraft on your current account on the
last 3 statement at least
- - Try to pay most of your existing credit (credit
cards, loans...)
For those of you who took a mortgage a few years ago, it
might be a good time to remortgage now and benefit from the new rates (between
3.80% and 4.30% over 20 years compared to rates over 5% in 2008). However considering
the costs of remortgaging, this operation is therefore only interesting if the
rate difference is greater than 1% or if the mortgage life can be lowered
So what is it going to be for you?
If you want to benefit from these new mortgage rates in
France and finally find this “pied a terre” you have dreamed of for such a long
time on the French Riviera, contact us and we will assist you every step of the way in your property search.
We have some great properties on the Cote d'Azur at the moment so check out our
website at www.luckeimmobilier.com and contact
us at anouk@luckeimmobilier.com
for more information.
A bientot!
Team Lucke Immobilier
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