Whilst Christmas came early for many French mortgage hunters with the arrival of sub 3.0% rates, the beginning of 2015 may herald even lower rates in France as the long-term outlook for growth in Europe remains weak.
At the end of last year the TEC 10 index dropped below 1% for the first time hitting 0.86%.
It is worth stressing again that this is now the rate investors will receive when lending to the French Government for a 10-year period. Hopefully this drop will continue to make it through to the high street resulting in further French mortgage rate drops, which will enable international buyers to benefit.
End to the social charges?
It seems that the controversial social charges of 15.5% which were added to French capital gains and rental income tax are in fact illegal under European law and many people who sold a property during 2014 are now making cases to reclaim the tax which they have overpaid.
This is also reassuring news for those looking to buy over the busy ski property season.
John Busby, French Private Finance