French mortgages – More UK buyers are now choosing second homes in France
Property investors looking for safe places to put their money during the economic downturn can look with renewed optimism at France where French mortgages are an increasingly attractive option.
The green shoots of recovery are appearing in the EU country’s property market with residential homes enjoying price rises of 3.9% from April to June this year.
Many UK buyers have been encouraged by prices stabilising and are reportedly making property purchases at this time with prices apparently starting to level out, now down just 2.5 per cent year-on-year.
The fall in property prices has made renting out residences a more desirable choice with buy-to-let schemes currently achieving a return of 5.6%.
Time to choose French mortgages?
According to a report called French Property and Mortgage Watch, France has been able to better ride recessionary times because its approach to residential mortgage lending is a cautious one.
France only allows mortgage borrowers to apply for property loans that are up to three times monthly income.
The report states “a degree of normality has returned” to the French property market with British buyers selecting second-home mortgages in France due to competitive interest rates, availability of French funds and a lower sterling / euro exchange rate.
The French mortgage market was described as “quite buoyant” by the report with many buyers choosing to borrow money in France rather than use equity release schemes in the UK, due to the stronger euro.
French mortgages from Conti
Conti is one of Britain’s best lenders of overseas property mortgages. For specialist guidance about choosing loans to buy homes abroad, contact us now.
Our team of overseas loans’ experts are able to provide leading advice about choosing the best French mortgages for your needs.
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