Average French mortgage interest rate increases between February 2022 and February 2023

Image by Freepik

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

Published by Victoria Maître Headdon

I am a dual French-British national. I hold a degree in English and French law with French language awarded by the Universities of East Anglia and Lyons (Jean Moulin III). I have just completed an MA in Translation (final result awaited). After qualifying and working as a Barrister in London, I have worked in the French Real Estate industry since 2001. I am also a certified Property Valuer. I provide a wide range of Translation, Interpretation, Consulting and Lawyer-Linguist services, including in-person and video link interpreting. I am specialised in Real Estate, Private Law (contracts, divorce, wills, probate), Administrative Law (residency permits, nationality applications, health card registration) and I also have Corporate Law (companies and sole traders) expertise.

Leave a Reply

%d bloggers like this: