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.
Article by +https://plus.google.com/113107350172679406191?rel=author on behalf of Propertyshowrooms.com
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.
Article by +https://plus.google.com/113107350172679406191?rel=author on behalf of Propertyshowrooms.com