French mortgages for a safe long term investment
Many buyers have been put off investing in French mortgages and overseas property due to talk of the economic downturn and poor exchange rates. However a well-chosen property could generate a very attractive and safe long-term investment.
French interest rates are at a historic low making mortgages much more affordable. Property prices are also lower and due to the financial climate, sellers are more open to negotiation.
French mortgages for a more stable investment
Thanks to careful lending practise in France, the French property market has remained much more stable than Britain’s. Buyers can borrow up to 100% of the value of their French property if they meet certain financial criteria and mortgages of 70-85% of the property’s value are fairly common.
Paying for a property with a mortgage rather than up front with cash means buyers are less exposed to currency fluctuations which, given the current poor pound to euro ratio, will be especially reassuring to the buyer.
French mortgages and property valuations
Another advantage of taking out a mortgage is that the lender will do their own checks on the property ensuring that a proper legal title exists, the property is registered in the buyer’s name and that a valuation of the property takes place.
To prove your financial status to the seller, an ‘Approval in Principle’ (AIP) is a good idea. Obtainable for free from your lender, it can be gained in 24 hours and serves as tangible evidence of your funds. Buyers with an AIP may also get their application fast tracked.
The French mortgage process can be lengthy – on average it takes four to six weeks (and it can take several months) so it is best to start the process as soon as possible. From signing the initial sales contract for your French property, you generally have between 30 and 45 days to receive a confirmed mortgage offer. Once this has been issued, a ten-day legal cooling-off period begins, giving the buyer ten days to fully consider the offer before they can accept it.
French mortgages and buy-to-let properties
France offers the buyer fantastic long term investment opportunities. The sale of buy-to-let properties has increased as buyers realise the financial potential of using their French properties as a source of revenue.
With the advice of a professional and with careful consideration, buying a property in France can prove to be a lucrative long term investment.
Choose Conti for French mortgages
If you are looking at French mortgages for your property in France, Conti the overseas mortgage specialists can help you find one that is right for you. Give us a call today and we’ll search through hundreds of French mortgages to find the right deal for you.
0800 970 0985