August 26, 2010 (PRLEAP.COM) Business News
London, August 26, 2010 As French fixed rate mortgages hit historic lows, French mortgage specialist launches its lowest-ever fixed rate deals, with 15-year fixed rates from 3.30%, 20-year fixed rates from 3.45%, and 25-year fixed rates from 3.60% (all at 80% LTV). has seen a sharp rise in the number of enquiries in August from UK and internationally based buyers looking to take advantage of the cheap fixed rate deals on offer at the moment from French lenders, and September promises to be even better as fixed rates are predicted to fall even further.

The reason for these record low fixed rates has been the downward pressure on the TEC10 index, due to a combination of a low inflation environment and investors seeking the safe haven of government bonds. The TEC10 index is the benchmark index against which French fixed rate mortgages are calculated.

The TEC10 index has been steadily falling since the start of the year and has consistently been below 3% during August, reaching an all-time low of 2.54% yesterday (Wednesday, 25th August). This compares to 3.65% on 6th January 2010.

John Busby, director,, comments: "France is in a historically low interest rate environment at the moment with average fixed rate mortgages at levels not seen since the end of 2005. At that time though the TEC10 index was well above 3%. Now with the TEC10 at 2.54% and predicted to fall even further in the coming weeks, average fixed rates could well hit record low levels in September.

"With fixed rates falling, we have seen a noticeable shift in the types of mortgages people are ringing to discuss. Fixed rates are now the overwhelming choice amongst buyers - this is not just because of the rate drop, its also because the margin between the average fixed and variable mortgage has narrowed since May, making fixed rate deals even more attractive.

"For international and UK investors looking for a safe, long-term investment, second home buyers or people looking to relocate to France, there has never been a better time to purchase French property. Borrowing conditions are as good as they've ever been, and with property prices still well below their peak, international buyers have a great opportunity to pick up a property at rock-bottom prices and fix monthly payments for 20 plus years at fantastic rates."

The above table gives examples of the best fixed rate deals currently available through to UK investors looking to purchase in France:-

If you can't see either table please click this link to view in html

Fixed period Loan term Rate Deposit
(years) (Years)

1* 20 2.80% 20%
5* 20 3.20% 20%
15 15 3.30% 20%
20 20 3.45% 20%
25 25 3.60% 20%
20 20 3.65% 0%
25 25 3.75% 0%

* For the one and five-year fixed rate deals, the rate becomes variable after the fixed rate period ends, but cannot increase by more than 1% from the initial interest rate. The rates in the table are for indicative purposes only. Rates may vary depending on the loan amount, location of the property and the profile of the client.

- Ends -

About TEC10

The TEC10 is the benchmark index against which French fixed rates are calculated. The index is calculated daily on long term bond yield curves and published by the French treasury.

Athena Mortgages

Athena Mortgages is the leading multilingual French mortgage broker for international buyers seeking French property finance and loans. Focusing exclusively on mortgages in France, Athena Mortgages can provide expert knowledge of the current French mortgage best buys for second homes, investment property finance, remortgage and equity release loans.

Telephone London +44 (0) 207 471 4515