Why Is It Wise To Use A French Mortgage To Buy Your Home?
Buying your French home with the help of a mortgage can make a lot of sense. It is always a good idea to keep a decent balance between fixed assets (as in your property) and liquid assets (as in your savings). It is never wise to tie up all your money in a fixed asset that cannot easily and quickly be liquidated….one never knows when cash may be needed quickly!
Many buyers who decide that they want a mortgage for part of the purchase price of their French property think only in terms of equity release from their U.K. property. Whilst this can work, it can also be wise to leave the equity in your main home untouched so that it is available for any unexpected expense that might occur.
So, many buyers nowadays decide to buy their French home with the help of a French mortgage. It has become much easier to arrange this than it used to be 20 years ago and we recommend a French bank with a whole division set up for International Buyers. There is no need to speak French to arrange the mortgage, nor to visit France. Everything can be done from home and there are other advantages for anyone who may be intending to earn rental income from the house or for anyone who may be subject to wealth tax.
It also helps to reduce your exposure to the current weaker pound. Yes you will still need to transfer your deposit into euros and make you monthly repayments, but should sterling strengthen in the next 18 months, then your repayments would become relatively cheaper to service.
Advantages in Summary:
- Simple and easy to arrange
- English speaking service
- Low rates
- 15% LTV deposit possible
- Secured on your French property
- Rental tax offset benefits
- Tie up less of your own cash
- Helps smooth your exposure to short and medium term exchange rate variations
- May enable you to stretch to get that extra special home!
If you would like more information about raising a French mortgage for your purchase give me a call on 0207 096 0709 or email me mortgages@healeyfox.com or further information.
Happy house-hunting
from the Healey Fox team
www.healeyfox.com
