Cushion Your Purchase against the Week Pound with a French Mortgage
Despite the weak pound we know that so many people still want to continue with their plans of buying a home in France. At a recent seminar which we held at Healey Fox we were surprised and gratified to find that people were as resolute as ever in their intention of living in France. There is no denying the fact that prices of French property are lower than ever and there are huge savings to be made against prices being asked a few years ago. The savings you can make by buying now will go some way towards offsetting the increase in living costs brought about by the weak pound and to help further in this I wonder whether you have considered purchasing your French home using a French mortgage.
As an example, currently French banks are offering capped interest rates on repayment mortgages of 1.95% for loans up to 300,000€ where the amount borrowed is no more than 70% of the value of the house and the loan duration is between 8 and 20 years. Fixed rates are offered at 2.25% for loans of up to 300,000€ with a 30% deposit and for a duration of less than 10 years.
Interest only mortgage rates are offered at 2.40% with a 30% deposit and for a duration of less than 10 years and fixed rate interest only mortgages for loans up to 500,000€ and for a duration of 7 years are offered at 2.75%.
It may well suit your circumstances to hold on to your assets that are currently held in sterling at the moment and borrow euros for the purchase of your property in France. Most currency experts seem to believe that the pound is roughly as weak as it will get and that it is likely to grow in strength against the euro in the months and years to come. By not using your sterling at the moment you may be able to ‘sit out’ the current exchange rate situation whilst still continuing with the purchase of a property in France and taking advantage of what will probably be the lowest prices ever for French property.
Luckily, despite Brexit, French banks are still keen to lend to British purchasers and if you would like to be put in touch with our French mortgage partners do let me know me. I will happily pass on your request to our French mortgage specialists who will be delighted to discuss all aspects of buying with a French mortgage, and outline in principle what you could borrow and at what rate.
from the Healey Fox team