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To get a clearer picture of the increases in French mortgage interest rates, I have compared the national rates between February 2022 and February 2023 on the scale given by the website Le Partenaire (lepartenaire.fr). The rates used are those of the site’s partner banks.
In February 2022, the average fixed rate for first time buyers over 20 years was 1%. In February 2023, the rate is 2.73%. Over 25 years, the average fixed rate was 1.15% in 2022 and is now 2.85%.
For those borrowers who do not qualify as first time buyers, in February 2022 the average rate over 20 years was 0.78% and in February 2023 it is 2.48%. For a mortgage over 25 years, the average fixed rate was 0.97% in February 2022 and it is now 2.55%.
Other categories of borrower could expect an average rate of 0.89% over 20 years in February 2022 and 1.06% over 25 years. In February 2023, the rates are respectively 2.6% over 20 years and 2.7% over 25 years.
The general increase over that one-year period is around 1.7% in most of the above cases.
What is called the ‘taux d’usure’ (usury rate), which is the maximum legal rate at which lenders can lend, will be raised monthly instead of every quarter for the next 6 months. This should help certain people access credit.
Lending criteria for mortgages are:
-A deposit of 10% to 20%
-Sufficient income to ensure that the borrower’s debt level does not exceed 33%-35% of their revenue
-Savings to put on deposit
Useful links: https://www.le-partenaire.fr/financement/taux-credits-immobiliers and https://www.banque-france.fr/statistiques/taux-et-cours/taux-dusure