French property mortgages attracting foreigners
Britons’ eagerness to invest in French property
More and more Britons are attracted by low French property prices and their eagerness is also due to the strong sterling. Estate agents, mortgage brokers and currency exchange specialists are all denoting a gush in Britons’ interest in properties across France. Compared to the euro and the dollar, Sterling is rising. French property prices are lowering with an average 1.8% drop across the country.
One of the HIFX’s currency specialists, Mark Bodega, declared that “borrowing costs have tumbled in recent months; mortgage rates are at their lowest in years, and affordability has been boosted by a slower property market as worries remain that France may well be lagging behind the rest of the Eurozone in terms of economic growth. There’s also the added appeal of easy access from the UK, better weather and the way of life so adored by British Francophiles.” Experts explained that the love British people hold for France is meant to last for years.
Experts point of view about French mortgage property
Explanations to British investments in French real estate
Evan Bench, a journalist at The Connexion France, united mortgage experts’ explanations related to British willingness to invest on French real estate:
- There was a 70% increase in new clients looking for mortgages for French properties over December 2012.
- There is not only a great rise in interest in the Alps, but also the south-west, Dordogne, the Charente, the Limousin, the Languedoc-Roussillon and the Côte d’Azur with projects ranging between €75,000 – €150,000.
- France is still one of the top countries to invest in.
The Currencies Direct French dealing team leader, Daniel Cousins, highlighted that the pound kept on performing against all major currencies last year and “momentum is a hard intangible force to stop and, all things being equal, sterling could be set for another year of good gains. Investment banks broadly believe the mortgage rate by the third and fourth quarters of 2014 will be £0.81 / €1.2345 which could stimulate a new round of British buyers towards the end of the year.” In addition, there is an expected increase in the volume of tenancies, and subsequently the investors’ income in 2015.