Traverse Market Update — December 2025

Euro growth prospects firm as ECB holds hawkishly; UK cuts as momentum softens — fixed rates edge up, demand stays resilient

Euro fixed rates have moved slightly higher following the ECB’s hawkish rate hold, with swap markets nudging up and lenders beginning to re-price at the margin. In practice, private banks are more likely to feed this through quickly, while many retail banks in Spain, Portugal and parts of Italy may absorb the move for now to protect volumes — keeping headline pricing broadly stable for prime residential purchasers (see table below).

Buyer sentiment remains steady. Financing activity continues across the Alps, as well as in Italy, Portugal and Spain, supported by seasonal demand and a cautious but improving tone. With the Alpine season in full swing and conditions strong, clients are progressing purchases with a renewed focus on certainty of execution and realistic completion planning.

“Where we’re seeing the best outcomes, clients are treating finance as part of the purchase strategy — not an administrative step,” said John Busby, Head of Sales at Traverse International Finance. “Even with fixed rates slightly higher, liquidity remains competitive and lenders are still open for business.”

ECB holds rates as euro outlook improves — tone stays firm

The ECB held policy rates (deposit facility 2.00%, main refinancing 2.15%, marginal lending facility 2.40%), but struck a more hawkish tone, signalling a higher bar for further easing. The immediate impact has been felt most clearly in fixed-rate pricing, where costs have edged up modestly.

BoE cuts as UK growth falters

The Bank of England delivered a 25bp cut, reflecting softer UK growth momentum. For UK-based buyers, this improves sterling conditions at the margin, but the practical cross-border message remains consistent: match debt currency to the asset where possible, and secure approvals early to reduce completion risk.

Swiss rates unchanged

Switzerland remains the lowest nominal-rate market in Europe, with the SNB holding at 0.00%.

Indicative European mortgage rates

(Typical terms for UK- and US-based non-resident borrowers, 60–70% LTV. Indicative only.)

Private-bank loans often require assets under management equal to 30–50% of the loan principal.

Case study — financing using company assets as additional collateral

The story opens
An Irish entrepreneur looking to purchase in the Alps was seeking a loan at 70% LTV on a property which was just outside the comfort range following a coup de cœur purchase decision.

Traverse closes
Traverse arranged a 100 per cent loan to complete the purchase, using a 10-year, interest-only mortgage fixed at 3.5% for 50% of the purchase, with the other 50% on a capital-and-interest basis. The client placed close to 50 per cent of the loan amount with the bank as assets under management. The attractive point here was that it was possible to use cash in the company accounts to form the basis of the assets-under-management requirement in a cross-collateralised agreement.

Comment

2026 outlook: with euro-area growth prospects improving and financing conditions stabilising (despite a firmer ECB tone), the market narrative is shifting from caution to measured confidence — favouring buyers who are selective on location, quality and long-term running costs.

For a deeper look at how French mortgages work for international buyers — including timelines, structures and common pitfalls — see our guide: French Mortgage Guide.

This update is for informational purposes only and does not constitute financial, legal or investment advice. Rates and market conditions are indicative and subject to change. Readers should seek professional guidance before acting on this information.