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Why Now is the Right Time to Refinance your French Mortgage!

Why Now is the Right Time to Refinance your French Mortgage!

With historical low interest rates, it has never been a better time to re-finance your French mortgage. It is now possible to borrow over a 15 year period at only 3.20% with a fixed rate. (This means that the rate will be fixed for the entire period of your mortgage!). Variable rates are even more competitive. The two most popular reasons why people choose to re-mortgage are to save money and to raise money.

With historical low interest rates, it has never been a better time to re-finance your French mortgage. 

It is now possible to borrow over a 15 year period at only 3.20% with a fixed rate. (This means that the rate will be fixed for the entire period of your mortgage!). Variable rates are even more competitive.

Why should you re-mortgage?

The two most popular reasons why people choose to re-mortgage are:

  • To save money – in order to lower monthly repayments or benefit from lower interest rates. Many people who own property in France are currently paying more than they need to on their mortgage. Therefore, with a re-mortgage, it will reduce your monthly repayments and thus save you money.
  • To raise money – to release some of the equity in your home. This could be useful if you wanted to  make home improvements/renovations on your property (and consequently, adding value to your property).
Who can re-mortgage?

Anyone who has an existing mortgage can look into re-mortgaging – provided that they meet the criteria set by their potential new mortgage lender.

In many cases, re-mortgaging can make a big impact on your monthly outgoings – for example, if you managed to negotiate down a €300,000, 15 year repayment mortgage from 4.20% to 3.20% you could save €150 a month (€27,000 over the 15 years).

How long does re-mortgaging take?

Re-mortgaging usually takes about 6-8 weeks, as you complete all the paperwork and have a valuation of your home conducted.  

When you’re looking to re-mortgage, it’s always best to have an idea of:

the estimated value of your home;

  • the outstanding mortgage amount;
  • your annual income and the income of anyone else who will be named on the mortgage;
  • it is also useful to get a “˜redemption statement’ from your existing lender, which will tell you exactly how much you owe.

So now is a good time to re-mortgage before interest rates are raised again. This can help you to avoid paying unnecessarily high levels of interest on your mortgage now and in the years to come.

About the Author: Matthieu Cany is the Managing Director for Sextant Mortgages. To receive mortgages quotes with no obligation, you just need to fill this questionnaire.