The value in the French mortgage and property markets just keeps growing and growing. Those who receive our monthly French Mortgage Watch newsletters will have seen that a 20 year fixed rate French mortgage has now dropped to an incredible 2.55%. This is on a competitive LTV of 80%.
In his latest piece on the holiday home market, James Pickford, Deputy Editor of the Financial Times Money section takes at look at the various mortgage deals available on second homes in both the UK and France.
The lending scene in the UK has become much better for second home hunters, but compared to the value prevalent in French property finance, it is still way behind.
The French mortgage market has always been based on long term security and this was a big reason why the French financial markets suffered much less of a hit during the worst years of the financial crisis. Securing fixed rates of long terms – fifteen to twenty-five years normally – provides both the government and the buyer with long-term stability.
Long-term fixed rate repayment mortgages in France are by far the most popular type of property finance, yet they are still often seen by non-resident buyers as a ‘too-good-to-be-true’ scenario. This is partly down to the terminology used. In the UK for example we too have fixed rates, but they are normally just fixed for a few years, perhaps five years max.
With a long term fixed French mortgage, knowing exactly what you will be paying each month 15-20 years from now, gives buyers incredible piece of mind.
If your are interested in talking to someone about french mortgages and what you could afford, please get in touch with us for a no-obligation discussion.