Is now the time to remortgage your French property?
All time low interest rates in the EUROZONE
Due to continued low Euribor rates many French banks are offering mortgage interest rates on a re-mortgage basis at, or close to an all time low.
There has never been a better time to look at the options available to move your French mortgage to another provider.
With fixed rates available at 2.95% (3.60% APR typical)* now is the time to review your mortgage.
The table below gives an example of potential savings taking into account associated establishment costs of the replacement mortgage.
A 15 year fixed rate French mortgage taken in October 2005
| All prices in € | Existing mortgage | New mortgage | Savings |
| Mortgage amount | 200,000 | 200,000 | - |
| Term | 10 years | 10 years | - |
| Interest rate | 5.10% (5.80 APR typical)* | 2.95% (3.80% APR typical)* | 2.15% |
| Monthly Payment | 2,131.10 | 1,926.60 | 204.40 |
| Cumulative paid interest over term | 55,732 | 31,192 | 24,540 |
| Notaire's fee | 0 | 3,060 | -3,060 |
| Early repayment fee (assumed 3% of balance outstanding) | 0 | 6,000 | -6,000 |
| Total savings | 15.480 |
As can be seen even taking into account the ancillary costs and redemption penalties the long term savings in interest are substantial
The above calculation ignores the comparative cost or saving offered by the life assurance policy replacing that already in existence.
The table assumes the establishment costs are paid up front but these can be added to the loan.
How To Proceed From Here?
The next stage of the process is to arrange a review of your existing mortgage against the other options available in the market. With a copy of your original mortgage offer, a brief financial fact find and an up-to- date mortgage statement Charles Hamer will carry out a detailed assessment of the options available, in order to confirm whether a re-mortgage is the most suitable choice for you.