Update on the French Mortgage Market
The French mortgage market is the third largest in the European Union after the United Kingdom and Germany. While the mortgage market in the UK and Spain suffered significantly during the fina ncial crisis, the French mortgage market has remained strong, with limited defaulting. Due to a strict upfront financial analysis for each dossier, French banks have succeeded for the most part in lending what borrowers are able to repay. This has created a great deal of stability for the French real estate market.
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Approximately 80% of properties in France are purchased with mortgage financing.
Mortgage rates in France were at their lowest point since World War II in 2010; in the first quarter of 2011, rates remain at levels lower than historical averages. With interest rates at historical lows in 2010, there was both a greater demand and supply of loans for French real estate purchases.
According to the European Mortgage Federation (EMF), in France, new lending increased by 38.5% from a year earlier.
Posted March 16, 2011
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