French mortgage market 'attractive for Brits'

May 2, 2012, 5:00 pm

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The level of finance available for property purchases in France makes the market very attractive to British purchasers.

Writing for My Introducer, Clare Nessling explained the nation's banking system has not been hit as hard as those in other countries, because its financial institutions exercised more caution than some of their counterparts elsewhere on the continent.

She stated the French market "currently offers the widest range of finance options and best available rates in Europe for UK buyers, and it's in a relatively secure situation".

It is also possible to take out a high loan-to-value mortgage on a property in France, with some providers continuing to lend up to 90 per cent of the purchase price.

A recent survey by HiFX revealed France is a top choice for British buyers overseas, with 35 per cent of people seeking foreign real estate hoping to buy in the country. This was more than double the number of purchasers considering Spain - which attracted 16 per cent of those surveyed - making it the second most popular destination for property deals, the Press Association reported.

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French lending market 'tightening'

June 28, 2012, 1:14 am

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The availability of mortgages with low rates is reducing in France, with many lenders increasing the cost of borrowing in the last month.

Head of operations at overseas mortgage specialist Connect Overseas Geoff Simmonds explained the cost of variable rate finance in the country has risen from 2.09 per cent to 2.79 per cent over the past four weeks.

However, he stated now is an opportune time for people to pick up property in France at a reduced cost, thanks to the strength of sterling against the euro.

"Overall, these are great times for bargain hunters, but I would caution buyers to source their borrowing needs in advance as the lending market is tightening," Mr Simmonds concluded. 

There is evidence more buyers are targeting the French real estate sector, with Trevor Leggett, managing director of Leggett Immobilier, recently revealing his firm experienced a 39 per cent rise in transactions during 2011.

Mortgage numbers decline in France

November 4, 2012, 12:00 am

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The number of mortgages granted by French banks fell again in the third quarter, making it integral that those looking for property in France have their credit in order when applying for finance.

According to figures from the French Mortgage Watchdog, there was a drop of 23.3 per cent in the penultimate quarter of 2012, compared to 2011.

While there is traditionally an August slump in mortgages, the recovery that normally occurs in September was disappointing.

Michel Mouillart, professor of economics at the University of Paris-Ouest and author of the study, explained that the country has never faced a drop of the same magnitude and speed.

Nevertheless, the property market is still attracting British buyers, specifically in southwest France, the Global Property Guide reported.

Trevor Legget, chief executive of Legget Immobilier, explained that his firm has seen transactions in the area sour by around a third over the past two years.

France remains attractive prospect for buyers

January 3, 2013, 11:00 pm

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French property will continue to be an attractive prospect for investors going into 2013, with low mortgage rates and rising demand levels driving activity. Mortgage specialists French Private Finance claim that there has been renewed interest in the market of late, as buyers submit mortgage applications to take advantage of current ultra low rates.

John Busby, director of the company, told Property Wire on December 21st: "This week alone we have sent quotes out over €15 million (£12.1 million approximately) of new purchases in the Alps at all different price points with viewings all confirmed. Now certainly is a good time to be buying with French mortgage rates at their all time historic lows and with loan to values of 80 per cent of the purchase price and effective interest rates from 2.4 per cent over 25 years."

Luckily for buyers, these rates are expected to continue this year and mortgage lenders are eager to do business with non-French residents.  "We are not anticipating any further changes to underwriting criteria," Mr Busby said. "There have been some positive noises about Europe recently with consumer confidence increasing so we can’t be sure these low mortgage rates will be around forever."

This signifies a positive change in the market, which should help to generate recovery. However, overall lending figures remain down. French Private Finance claims that in the penultimate quarter of 2012, banks were registering a strong decline, with lending down 24.3 per cent on the same period in 2011.

However, Mr Busby stressed to the news provider that this does depend on the market segment and the lender. For example, the Banque de France recorded a rebound of 21 per cent over a month in the number of French mortgages but experienced a reported drop of 34 per cent over the year.

"The beginning of the year recorded a sharp drop in demand but since September, in a context where borrowing has never been so inexpensive, demand has increased again thanks, in part, to an increase in borrowers re-mortgaging," Mr Busby  explained.

Paris apartments still too expensive

April 25, 2013, 6:43 am

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High prices are denting interest levels for Parisian property, according to one property expert. Christine Perrissel, company director of Agence Etoile, told Bloomberg that at least one in four apartments in the city can't be sold. This is despite mortgage rates currently standing at record lows.

So why aren't more people opting for French real estate? After all, prices are high in London but demand remains constant. It seems the state of attrition reached in the Parisian property market is thanks to an unwillingness of sellers to lower values. "I have some inventory that’s too expensive and sellers don’t want to lower prices," Christine Perrissel told the news provider. "Buyers are just much more selective."

This isn't the first negative report of the French property market to emerge. At the beginning of April the Global Property Guide reported that the country is struggling to bring down its sky-high unemployment rate and budget deficit, which is having knock-on effects for the real estate sector. The National Institute for Statistical and Economic Studies recorded a 1.63 per cent fall in house prices in Metropolitan France for 2012 compared to 2011 levels. This is the third consecutive year of annual declines.

When adjusted for inflation, values dropped by 3.12 per cent, with a 1.27 per cent quarter-on-quarter rise in Q4. Sales volumes have also taken a hit, with data from La Chambre des Notaires de Paris reporting just 709,000 homes were sold across Paris last year. This is a fall of 12 per cent year-on-year.

The poor health of the market is partly due to the inactivity of first-time buyers. As in most of Europe, those looking to get a foot on the property ladder have remained constrained in France. Les Chambre des Notaires de Paris believes this is due to the end of the loan to zero ration and the percentage of transactions by purchasers under 30 years of age fell to 15.8 per cent of all sales in 2012.

French property market proving 'attractive' for buyers

May 15, 2013, 7:12 am

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French property is increasingly becoming the subject of much interest, according to one expert. Leggett Immobilier, a leading international estate agency in France, explained that market conditions are attracting buyers to the country. During the first quarter of 2013, the company experienced a "steady increase" in investors and claims this is thanks to low mortgage rates and sensible pricing.

It is certainly true that conditions are becoming more and more favourable for buyers across the channel. Mortgages are now at their lowest level in 65 years and the recession has forced vendors and sellers to bring down property prices to more affordable levels. However, investors will still need the capital behind them to obtain French real estate as lending is still relatively constrained, mirroring conditions in the rest of Europe.

What's more, the property market isn't exactly in good health at the moment, although there are signs of improvement. Trevor Leggett, chief executive of Leggett Immobilier, commented: "We understand that the overall number of property sales in France fell by 20 per cent to 655,000 last year and that this year is likely to see a similar number of transactions. However, it's clear that many people are also convinced that the market will improve over the coming years and with the cheap money available that now is the time to buy."

He added that he has received "anecdotal evidence" that vendors are also becoming more realistic with their pricing, understanding that high values will not wash in the current climate. This was demonstrated by a recent sale by Mr Leggett's team in Brittany, in which two Parisian buyers arrived with financing in place, drove a hard bargain and gained a good value for money property.

However, it isn't just the French who have realised that there are bargains to be had in the French property market. "France has historically been the favourite destination of UK property buyers who love the sunshine, countryside and relaxed way of life," Mr Leggett stated. During A Place in the Sun Live last month, Leggett Immobilier in fact noticed a swath of Britons surprised by the value for money French property could offer them.

Strong Pound And Low Prices Leading Brits to Look Towards France

February 21, 2014, 4:32 am

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<p>British property investors are increasingly looking towards France for purchasing second homes as an investment, following a syncing of economic conditions that works in their favour. Recently, it had been reported that Spain overtook France as the number one destination overseas for British investors to purchase in. But according to France's English language newspaper The Connexion, this could be a reality that changes as the relative strength of the pound and the lowered prices for homes in France leads to more people looking to buy in the country.</p> <p>Mortgage lenders, estate agents and currency exchange experts are all experiencing a serious rise in interest from British buyers at the moment, the latest report in the news provider has claimed. The biggest reason for the returning sentiment has been the strength of the pound. It has this week reached a 12-month high at &#8364;1.21 to the pound. On top of this, property prices in France have fallen by 1.8 per cent over the course of the last year with only low interest rates propping up the weak sector. This synergy is working to the advantage of overseas investors from the UK who can get more for their money.</p> <p>And with the eurozone financial health improving all the time, house prices in France are only likely to improve in the long-term, meaning that people will most likely be able to make their money back somewhere down the line. Another potential reason for more Brits in France at the moment offered up by the newspaper is the fact that the French property sector is so strong currently. As the market improves, people are able to sell their homes for a higher price before buying something more substantial across the Channel.</p> <p>Mark Bodega, of currency exchange specialists HiFX, said that France is so attractive at the moment simply because it &quot; ticks all the right boxes &quot;. &#8220; Borrowing costs have tumbled in recent months; mortgage rates are at their lowest in years, and affordability has been boosted by a slower property market as worries remain that France may well be lagging behind the rest of the Eurozone in terms of economic growth. Of course, there&#8217;s also the added appeal of easy access from the UK, better weather and the way of life so adored by British Francophiles, &#8221; he said.</p>
Article by +James Roberts on behalf of Propertyshowrooms.com

Brits Top Buyers of French Property

July 25, 2014, 9:08 am

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<p>A survey undertaken by French bank BNP Paribas shows that Britons bought more second homes in France during 2013 than any other nationality. The number of British purchasers rose by 5% during the year, with most purchases in the Loire, Charente and Limousin areas, rather than the more expensive regions of the Alps and the C&#244;te d'Azur.</p> <p>In the prime area of Paris, Britons bought just 3% of the homes bought by foreigners, as interest from ultra-wealthy Russian and Chinese buyers picked up through the year.</p> <p>Average house prices for France are now at &#8364;448,000 and the average euro mortgage is &#8364;354,000 although transaction volumes have continued a downward trend, to just less than 13,000 in 2013 from 15,000 in 2012.</p> <p>The findings of the survey were noted by offshoreonline, an advisor to UK expatriates who attribute the increase in number of British buying property in France reflects the recovery in the UK property market.</p> <p> Offshoreonline's Tim Harvey commented that France has weathered the economic crisis better than Spain , making the country a &quot; sound investment in its own right, &quot; adding that: &quot; Mortgages in France offer a huge variety of choice to the buyer from simple variable rates through to capped, fixed and long-term fixed rates. Banks will often allow deposits of just 15%, with lower rates available for those with higher deposits. &quot;</p> <p>The highly-developed mortgage market in France represents value to overseas buyers, attracted by the flexibility of terms and low associated taxes and fees.</p> <p>Harvey also pointed out that the European Central Bank's interest rates are at their lowest ever levels with many banks now offering variable rate Euro mortgages from just 2.3%.</p> <p>Britons are increasingly looking overseas for investment opportunities in real estate in response to spiralling house prices in the UK, together with increased lending restrictions imposed by mortgage providers.</p><br />Article by +Peter Mindenhall on behalf of Propertyshowrooms.com

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Retirees "flocking" to France

August 6, 2007, 5:00 pm

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A million British pensioners are receiving their state allowance from overseas, according to new figures from Saga. But France has become more popular with Brits than Spain because there are fewer established expat communities to annoy them, according to an overseas mortgage adviser. Matthew Weston, manager of overseas mortgages at Blevins Franks, said that people were looking for a cultural experience and a change of lifestyle rather than a Little Britain Abroad. "Normally what people are looking for is a peaceful home set in natural surroundings that is in close proximity to a local scene that has a good dose of its own unique culture and entertainment," he said. A Cluttons France spokesperson said that the French Riviera was becoming very popular with a higher class of Brit who did not want to see "an English man wearing his football shirt in France". Olivier Morvan said that over-development would affect Spanish property values but the French Riviera was a prestigious area that would retain its value.
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French property market "sheltered"

August 9, 2007, 5:00 pm

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Experts assert that the French property market is by and large sheltered from the current US sub-prime crisis due to a stringent legal framework that will not allow sub-prime risks to penetrate.

Serge Grzybowski, chief executive of property development group Icade, argues that France is protected from this vulnerability as a result of the way in which its mortage system is set up, with banks tending not to lend excessively to mortgage borrowers.

In the US a combination of uncapped floating rate loans and relatively high lending in relation to disposable income leaves many borrowers susceptible to base rate fluctuations.

"Floating-rate loans are often capped in France and banks don't lend more than 33 per cent of an individual's disposable income," explained Mr Grzybowski to the French press, according to Forbes .

He continued to state that French property groups tend to have little exposure to "the more speculative property markets" or foreign property markets.

A spokesperson for Association Integration Kreizh Briezh maintains that UK property investors with an eye on the French market would stand to benefit from French language classes in order to make the process and transition easier.
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Overseas property enquiries increase

August 13, 2007, 5:00 pm

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The number of overseas property enquiries from UK investors on is on the increase according to new figures.

Reports from financial services provider Baydonhill reveal that overseas mortgage enquiries have increase by almost a third (30 per cent) during the past year, with brokers reporting increased activity among UK clients.

The key areas of interest are France , Spain , Italy and Portugal , indicative of the fact that traditionally popular locations for foreign property investment are continuing to attract UK buyers.

In light of these trends more than half (52 per cent) of brokers are ramping up their focus on foreign property in anticipation of increased commissions in this area.

"The upturn that brokers are seeing should only increase over the next few years," commented Fiona Watts of Baydonhill.

Meanwhile HiFX reports that British investors are currently cashing in on a boom in international property with an increase in the number of property owners selling their overseas properties.
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British investors advised to look abroad

April 2, 2008, 5:00 pm

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Property investors from the UK have been advised to look overseas if they wish to collect good returns.

Homes Worldwide recommended that Britons avoid the domestic market as mortgage rates are rising while house prices are falling.

The website has suggested that investing on the other side of the English Channel could be a more lucrative move, as the French market is currently experiencing growth.

According to the website, house prices in France went up by four per cent last year, while their values are about a third cheaper than the UK.

This means that investors could collect the proceeds of capital growth in a relatively cheap market.

Furthermore, Homes Worldwide believes that France is holding firm in the face of global economic problems.

The website said: "The market does not seem to have been affected by the so-called credit crunch that has unsettled the US and UK markets."

This comes after currency exchange firm HiFX said that last year, France accounted for more than a quarter of all the enquiries it received from prospective property buyers.

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Investors 'need to research market before buying'

May 14, 2008, 5:00 pm

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Foreign property buyers from the UK need to carry out thorough research before buying, experts have said.

According to the Your Mortgage website, purchasing a home in Spain or France can be just as stressful a process as buying in Britain.

Therefore, it has recommended that people who are thinking of entering a foreign market try to reduce the likelihood of encountering problems.

The online portal said prospective buyers need to find out as much information about their chosen market as they can.

In addition, it suggested that people try to avoid letting the prospect of buying a dream home cloud their judgement.

Your Mortgage added: "Dedicated research is even more important when negotiating a sale in another country and, presumably, another language."

According to research by A Place in the Sun magazine , France and Spain are currently the two most popular markets with British property buyers .
 

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French property reform 'to avoid risky credit'

September 25, 2008, 5:00 pm

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The conditions that led to the credit crunch will not be allowed to recur in France even as it seeks to extend home ownership, the country's finance minister Christine Lagarde has said.

Speaking about the future of property transactions in France, Ms Lagarde told the BBC : "Expect two conditions - a down payment of 20 per cent of the value of the house plus mortgage [repayments] which will not exceed 30per cent of income."

She added that there is already a good "safety net" in place and there is no sub-prime lending in France.

Those looking to invest in French property may decide it is a safer bet because of the cautious way its banks proceed, preventing the kind of problems seen elsewhere.

Anyone buying a home in France now is likely to get a more appropriate price than in the last few years when some vendors have tried to artificially inflate the figures they were asking for, the founder of French property specialist firm VEF Trish Mason wrote this week.
 

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French mortgage lenders 'will lend to Britons'

February 22, 2009, 4:00 pm

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Mortgage lenders in France are still keen on providing homeowner loans to non-residents, it has been claimed.

According to French Mortgage Direct, many of the country's lenders are willing to allow buyers to borrow 100 per cent of the purchase price of a property with a capital repayment mortgage throughout France, deals that were previously only available in selected regions.

Sharon Hill of the firm described the news as "fantastic", adding: "A 100 per cent mortgage will go a long way to help enable the purchase of a French property and could help dreams come true."

She noted that such loans are available at either a fixed or cap and collar rate, with interest starting at 5.3 per cent over a 15-year period on properties priced above 300,000 EUR (263,000 GBP).

Earlier this month French property expert Patrick Joseph described buying property in the country as a "safe investment", noting that interest in the country's housing market still exists despite a recent dip.

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More mortgage approvals demonstrates return to the market for investors

April 11, 2010, 5:00 pm

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An increase in the number of individuals applying for overseas European mortgages is a sign of the rising confidence in the property market, it has been suggested.

Overseas mortgage specialist Conti has reported that March has been its busiest month in terms of applications for almost a year.

The financial services company witnessed an increase of 48 per cent over the period in comparison with previous monthly averages.

Among the more popular destinations for property investors was France, with individuals tempted by the country's accessibility and favourable rental prospects.

Clare Nessling, Conti's operations director, said that falling prices mean that now is a good opportunity for British buyers to enter the market.

"Confidence is definitely growing, but there's also an element of buyers snapping up bargains in traditional hotspots while they have the chance," she explained.

"Even if you're lucky enough to be a cash buyer, it may be worth taking out a mortgage until the exchange rate improves."

Furthermore, potential investors may be interested to note that France is the number one destination in the world for international tourism, according to the World Tourism Organization.

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French fixed-rate mortgages 'at lowest ever rate'

September 8, 2010, 5:00 pm

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French fixed-rate mortgages have hit historic lows, making now a good time to search for properties in Languedoc-Roussillon and Rhone-Alpes property .

Some mortgage companies are offering rates as low as 3.3 per cent for a 15-year fixed period or 3.6 per cent for 25 years.

John Busby, director at Athenamortgages.com, said: "For UK investors looking for a safe, long-term investment, second home buyers or people looking to relocate to France, there has never been a better time to purchase French property."

He added that borrowing conditions are as good as they have ever been and property prices are well below their peak, meaning property investors can pick up some real bargains.

The firm stated that it has seen a sharp rise in the number of UK buyers looking to take out a mortgage in August, and September promises to be an even better month.

Figures released by Primelocation last month highlighted that established countries such as France are currently dominating property searches.
 

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France popular with Brits buying abroad

September 15, 2010, 5:00 pm

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France is proving more popular than ever with investors buying property abroad, according to mortgage firm Conti.

According to the company's figures, the country has a massive 43 per cent share of mortgage enquiries made this year, marking an increase of 12 per cent and suggesting that a greater number of people are looking at Rhone-Alpes property and Aquitaine real estate listings .

Spain was the second most popular nation in terms of mortgage enquiries, accounting for 24 per cent.

Clare Nessling, Conti’s operations director, said: "The percentage of people enquiring about French mortgages has more than tripled over the last two years, and it’s currently out on its own as far as popularity goes.

"Not to be outdone, however, Spain is still holding on strong, and has experienced an increase in enquiries over the last year, despite the negative headlines, and still accounts for a quarter of enquiries received."

She added that the figures suggest people are favouring tried and tested locations when it comes to investing in overseas property.

Last week, it was reported that French fixed-rate mortgages have hit historic lows.
 

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Paris remains popular with British buyers

November 8, 2010, 4:00 pm

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Individuals looking to buy property in France may be interested to learn that Paris is the most popular location for British buyers looking for homes in the country, Overseas Property Professional reports.

According to new French statistics, the majority of Brits living in the country have their permanent home in or around the capital city.

One of the primary reasons that Paris remains popular is the good transport links which exist, the news provider claimed.

"Arts, culture, jobs and rental opportunities attract UK buyers and the latest figures from the French statistics office INSEE showing that 135,000 Britons [are] living in Paris," OPP added.

In addition, the tourist market in the country is also attractive to potential property owners, with many buy-to-let investors reporting that there is no 'out of season' time in Paris.

Meanwhile, French mortgage specialist Athena Mortgages said last week that borrowing in the country is at its lowest level since the Second World War.

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Prices to rise in France this year

January 6, 2011, 4:00 pm

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Average property values in France are expected to experience modest rises throughout 2011, while some regions will see significant increases.

This is the forecast from Leggett Immobilier and the FNAIM, which also noted that mortgage rates in the country are at their lowest levels since World War II.

Real estate in the country has had its ups and downs over the past few years, with considerable falls occurring in 2009 - in some areas by as much as 20 per cent - followed by a period of stability last year.

With this increased stabilisation and with prices now standing at more realistic levels, there has been a rekindled interest in these sectors, Leggett Immobilier added.

Trevor Leggett, chairman of the French-based estate agents, believes that the market lows of 2009 are now a thing of the past.

"I have been selling houses in France for over 18 years now and am confident that the worst of the market is behind us," he confirmed.

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