A mortgage in France is an investment opportunity

For UK residents considering buying overseas mortgages during the economic downturn, a mortgage in France looks to be a sensible investment option.

Property and mortgage experts are of a view that France has a more stable property market than the UK. When this fact is combined with low mortgage rates and alternative property savings schemes such as leasebacks, it is believed that France is well placed to weather the current recessionary conditions.

The Euro base rate was reduced recently by half a per cent to 1.5 per cent leading to new mortgages becoming available at less than three per cent from some French banks. When this is contrasted with rates above six per cent just before Christmas, there has been a major drop in mortgage costs equivalent to the hefty interest rate falls in the UK.

Mortgages for overseas property in France

At the same time, French property values are holding their own with home prices tending not to fall to the same extent as in Britain. In fact, even over the last quarter French house prices have risen 0.7 per cent.

Lending policies of banks have contributed to the capacity of French properties to hold their value – they always require a minimum deposit of 20 per cent.

A potentially attractive option for people interested in owning and managing French property is leaseback purchasing. Returns of up to six per cent are possible at present with supplies of tenants and rents guaranteed. Established correctly, mortgage loans can be appropriately funded.

Mortgages in France for overseas property buyers

There are practically no serious obstacles to buying property to rent or living in France. In fact, for citizens from other countries in Europe there is absolutely nothing to prevent you acquiring a French home of your own.

People living in France can enjoy excellent quality of life with great dining, superb weather and wonderful scenery considered the norm – usually on a modest budget.

Conti is the UK’s leading overseas mortgages specialist. For a mortgage in France, contact us to discuss your requirements. You can call on 01273 77 28 11 or complete an online enquiry in just a few seconds.

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