Monday, 7 November 2016

Monday, 7 November 2016

Best French Mortgages


A recent Notaires report has shown that house prices outside of Paris fell again in the second quarter of 2016, although in contrast, sales reached their highest level since 2012. There is a strange phenomenon in the housing market in France currently, with house prices falling whilst sales are increasing, rather than soaring, as was described in one recent report. Most observers or commentators would attribute the "bounce" in activity down to historically low mortgage interest rates, which have now been consistently under 2% for the past year. When you combine the low rates with lower prices and property in France has once again become more affordable for many French households, and also overseas buyers.

However, in the domestic market, with the fundamentals in the economy showing few signs of recovery, the rise in activity is probably nothing more than a correction from three years of low sales. UK buyers have been hit by the falling £ over the last 12 months, as the cost of a home has risen significantly with the £ trading at 1.15 rather than as high as 1.40 odd.

The good news for buyers is that there will be no significant increase in prices in the near future. UK buyers would do well to consider using a Euro mortgage, even if they are comfortable cash buyers. We can arrange penalty free mortgages easily enough, and clients can opt to wait for Sterling to improve before repaying the mortgage in part or in full as they prefer. In choosing this option, you can actually choose your own exchange rate, rather than having it imposed upon you.

BEST FRENCH MORTGAGES

Rate Term LDV Notes
1.70% 20yrs 80% Rate fixed for the term
2.15% 25yrs 80% Rate fixed for the term
2.20% 20yrs 85% Capped rate for 7 years
1.50% 15yrs 80% Rate fixed for the term
1.85% 20yrs 80% Tracker Variable
2.60% 14yrs 75% Interest Only




More details from Peter e-mail sales@allez-francais.com

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