Last post: Jun 8, 2012
The Euro crisis hasn’t been bad news for everyone. For UK residents looking to buy a holiday home in France, the combination of a weakening Euro, a soft French property market and now the availability of low rate French mortgages has meant this purchase has never looked so attractive.
The Euro crisis hasn't been bad news for everyone. For UK residents looking to buy a holiday home in France, the combination of a weakening Euro, a soft French property market and now the availability of low rate French mortgages has meant this purchase has never looked so attractive. This week we are please to be able to say that the 20 year fixed rate mortgage rate in France has fallen to just 4% for non-residents. To be fair, the French property market had been one of the most resilient in Europe. They didn't have the boom on the way up and so avoided the bust in the way down. However, they could not remain completely immune form the global financial storm and data released recently shows that prices are softening in many areas traditionally popular with British buyers. So far in 2012 it is estimated that the following price falls have been seen:
- Paris: -5%
- Brittany: -4.6%
- Normandy: -6%
- Dordogne: -4%
- Burgundy: -9.7%
And in the region of Tarn in the South-west of France, the website seloger.com suggests prices have fallen a whopping 18% so far this year! Activity is low too. The Banque De France reported that mortgage approvals dropped by 41% from January to February this year posting the lowest number for almost 3 years. The advantage therefore at the moment is clearly with the Buyer and if you're British, you also have the currency exchange rate and its best level for about 4 years so news that a fixed rate French mortgage is available at 4% for 20 years has come at an excellent time. French banks too are keen to lend at the moment. LTVs of up to 85% on a purchase (70% on a remortgage) are readily available with low fees and a variety of fixed, variable and even interest-only options available. For a full guide to French mortgages see our brief guide. To learn more about what is possible either give us a call on 0845 126 0350 or complete our brief French mortgage application form here and an English speaking French mortgage advisor will be in touch.
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