Key Post What are long term fixed rates in other eurozone countries

[peemac]

Thank you - we do have all of those things (balance terms and rate) so I’m inclined to fix if we can. Totally take your point on the long term fixed I guess my only concern is that irelands rates might become more like the rest of Europe and we would miss out but for the comfort of knowing what the rate will be for majority of rest of term I think it’s worth it

Long term rates in Ireland are about the average in Europe. And whilst short term rates and variable rates are cheaper, the costs for the banks are cheaper too (especially repossession), so chances of banks here using those margins are zero.

For 15-20 year rates Germany is over 3% France is just under 3%, Portugal is 2.6%

 

[Brendan Burgess]

Long term rates in Ireland are about the average in Europe.

peemac

That is very interesting. It merits a separate post if you would like to do one? Maybe links to the source as well.

I presume you are comparing Avant and Finance Ireland with the rates in the other countries.

It's particularly interesting that rates in Portugal are lower than Germany.

Brendan

 

[NoRegretsCoyote]

For 15-20 year rates ..... France is just under 3%

That's plain wrong.

This Banque de France release says that new, long-term fixed mortgage rates in France were only 1.14% in March.

This French consumer website says the best 25-year rate available from BNP Paribas is 1.32%, ordinary rate 1.93%.

Portugal is 2.6%

Highly doubtful. This Bank of Portugal release says average mortgage lending rate is 1.03%. I don't know how you have 15-20 year rates of 2.6% consistent with that average.

 

[Brendan Burgess]

- crédits à l'habitat
dont crédits à l'habitat à long terme à taux fixe

- housing loans
of which long-term fixed-rate housing loans

 

[peemac]

Some European banks seem to have many secondary charges especially finance insurance and other fees.

As the examples below are fixed period loans, the apr is a truer reflection of the full cost

This is where I got the German rate
https://www.loanlink24.com/mortgage-calculator/Mortgage-rates/
When you change to 20% down payment, almost all the rates are over 3%

For Portugal

and https://www.uci.pt/uci-mortgages/
The headline rate is just over 2%, but you have many fees added so the apr comes to 3%

France

France - BNP Paribas Headline rate 1.75%, APR after non optional charges 2.4%
https://mabanque.bnpparibas/fr/emprunter/credits-immobiliers/estimer-capacite-emprunt

Spain - Avant Parent bank - similar to Avant here

Fixed Interest Rate Mortgage | Bankinter

Bankinter

www.bankinter.com

 

[NoRegretsCoyote]

France

France - BNP Paribas Headline rate 1.75%, APR after non optional charges 2.4%
https://mabanque.bnpparibas/fr/emprunter/credits-immobiliers/estimer-capacite-emprunt

My limited knowledge is that French banks will negotiate individually on the rate, so what you see advertised online is a maximum.

That BNP Paribas calculator gives me a headline rate of 1.1% for 5 years and 1.73% for 25 years. In practice these rates must be lower if the average long-term rate calculated for the market is 1.14%.

Even allowing for non-optional charges I don't see anything to support your original claim that 15-20 year rates are "just under 3%" in France.


I don't know the other markets as well but I suspect similar factors are at play. Irish lenders (like the British ones) generally don't negotiate on the rate in my experience.