Individuals looking to buy property in France may be interested to learn that higher eurozone inflation could lead to an increase in mortgage rates in the country.
This is according to Athena Mortgages, which claimed that the rise will come on the back of the European Central Bank's (ECB) decision to raise the main interest rate to 1.25 per cent in April.
It comes after two years of the ECB leaving the rate at one per cent and is an attempt by the finance house to ward off inflation.
However, Athena Mortgages noted that there has not been much change in the rates on offer for mortgages in France since the announcement of the increase.
"Markets and banks had in fact already priced in this increase. We have seen an average increase of about 0.20 per cent in the cost of variable rate mortgages, with some banks opting to further increase their margins," said director of the firm John Busby.
But the organisation added that further increases are on the way.
"We should expect further increases to the lowest rates on offer and a flatter market overall as it becomes more expensive for banks to refinance and maintain market beating rates," Mr Busby said.
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