While UK property investors have been benefitting from low mortgage rates for some time, rates in France have become even more enticing in recent months.
John Busby, director of broker French Private Finance, was quoted in the Telegraph as saying that they “are now officially the lowest rates we have seen for French mortgages this century or last.”
UK buyers can now obtain a rate of 3.1 per cent on a 20-year repayment mortgage, down from 3.75 per cent 12 months ago, according to French Private Finance.
The deal in question only requires a 20 per cent deposit and is offered by French lender Caisse D’Epargne.
Such a drop equates to a big saving over the term of the mortgage when compared to the lowest rate of a year ago – to the tune of nearly 30,000 euros on a 400,000 euro mortgage. According to the article Mr Busby believes that French mortgage rates will soon fall to 3pc
The Telegraph also cites Mr Busby as saying that interest is strong in the more expensive areas including the Alps, Cote d’Azur and the Capital, Paris.
Thinking About Investing in a French Holiday Home?
Such low mortgage rates could inspire even more Britons to follow their dreams of owning a French holiday home. But while these figures are undoubtedly alluring, such a big investment requires careful consideration. Understanding French property, inheritance and tax law as it relates to overseas property investors is essential, as is taking out adequate holiday home insurance – always make sure you do your homework thoroughly before you commit.
If you choose to take advantage of the current French mortgage rates Click4quote.com can provide holiday home insurance for many European destinations, including France. To get your holiday home insurance quote simply go online or call us and see how we can help protect your holiday home.