Beautiful scenery, tempting lifestyle and the affordable property of France aside, the rates of mortgages on offer are a big factor behind the demand for French property.
But why get a mortgage? There are three compelling reasons to leverage rather than paying the full sales price upfront. The first – especially relevant for British buyers – is that current mortgage deals can mitigate the unfavourable exchange rate, by allowing you to lock into a 10-year fixed rate, for 2%, for example. You can also put down a minimal deposit to reduce the amount you are transferring over right now. But if the price of your home goes up by, for example 2 per cent in a year, you are recouping the loss on the rate. Of course, depending on early-repayment penalties, you could also pay off a lump (or all of it) when the exchange rate improves – whatever deal you choose to take.
Another reason is that French mortgages are still at historically low rates – at around 2.0 to 2.5 per cent, for example, so that the repayments are relatively easy to service (especially if your property generates some income to part-cover these).
The final reason is that buyers who have their financing in place are in a stronger position to negotiate a good price and agreeing to purchase a home promptly.
If you want more information on French mortgages, please, do not hesitate to visit our partner’s website just here: ICE Finance