Three month Euribor, which is used to price variable rate mortgages, has come down from 1.58% in November to 0.75% this week and this has led to some of the biggest French lenders reducing their rates for British buyers.
The cuts mean that even more deals between 3% and 4% are now available and these now join some other existing best buy rates of 2.09% and 2.49%.
France still accounts for the biggest number of mortgage enquiries we receive, and that shows no signs of changing. The country has become an increasingly attractive investment option, not least because of low interest rates, easy access from the UK and good rental yields, but also due to some great property prices because of a slower market. Which means that there are many motivated vendors who are willing to accept lower offers. And because the euro has become weaker against the pound, you can get more for your money at the moment.
The French mortgage market has remained very calm throughout the global downturn, primarily due to its financial system having been more cautious in the past. Although some lenders tightened up their lending criteria last year, due to the eurozone debt crisis, the country still offers the widest range of finance options and best available rates in Europe for UK buyers.
And as it’s in a relatively secure situation, loan to value ratios are still high and it’s quite normal to be able to borrow up to 70% of the value of a property with an interest-only mortgage and up to 85% with a repayment mortgage.
It’s a buyer’s market.
