The short answer to getting the best rate for a French mortgage is to go for short duration and select a tracker rate.
A recent study conducted by market specialist, Crédit logement, has revealed that the key criteria influencing French mortgage rates were the following:
Firstly, the contractual duration of French non-resident mortgages is the primary driver when it comes to interest rates. In June 2014, with an average of 3.31%; 25 year fixed rate French mortgages were 44 basis points higher than 15 year fixed rate products.
Secondly, mortgage types significantly affect the pricing of French mortgages. Over a similar duration, choosing a Euribor tracker rate will help achieve savings of up to 20%. In June 2014, 15 year French tracker mortgages sold at an average of 2.11% versus 2.67% for fixed rates.
Thirdly, the borrower profile and occupation plan a role in securing the best rates for French mortgages with difference as high at 50 basis points between different customer profiles.
Last but not least, negotiation skills ! Bank managers are still given significant flexibility to negotiate rates so don't simply rely on ratecards and test your influencing skills or use a qualified regulated French broker.
For more information: http://www.creditlogement.fr/Observatoire.asp