1.95% Deal for French Mortgages for Property in France

by catherinefullerton June 30, 2010

If you have a property in France and looking for a good euro rate deal then a new product has been launched at just 1.95% for 80% loan to value. The tightening of all credit on mortgage products together with the fall of the euro might spook some people but there are still plenty of excellent deals for french property mortgages from uk brokers and lenders who specialise in this type of product for euro mortgages outside of the UK. The rates in the Eurozone are also some of the most competitive.

The new Conti 1.95% mortgage deal for french properties

The launch of this new variable rate deal for people with a 20% deposit (ie: 80% loan to value LTV) is offered by the french specialist lender Conti. They have a huge range of products if you are borrowing in Euros and this new 1.95% deal for a repayment product is said to be the lowest this property specialist has offered. The maximum loan to value is 80% with a minimum loan of £47,000. There are other offers that Conti can provide as follows :

A selection of Conti French mortgages for UK investors and residents

If you want a fixed rate rather than the cheaper variable rate product there are 4 options available for property in france mortgages as follows (all these are Euro based products) :

• 3.15% fixed rate for 5 years 80% LTV
• 3.30% fixed rate for 2 years then capped at 4.3% 80% LTV
• 3.50% fixed rate for 2 years 100% LTV
• 3.90% fixed rate for 5 years 85% LTV

The minimum loan on the 100% LTV fixed rate product is €300,000 with a minimum single or joint income of €90,000 and these are all repayment mortgage products rather than interest only.

Conti started operations in 1994 and have helped literally thousands of people with overseas mortgages on investment or second home properties.

A spokesperson for the group, Clare Nessling, sums up the current market in France quite nicely saying that “France has become an attractive investment option (because of) falling property prices and very low interest rates but the bargains won’t last forever (for low interest rates) so prospective buyers may want to act sooner than later”

With the poor exchange rate from the pound to the Euro many people are looking at near Europe to lock in a euro mortgage not only because of the exchange rate but also the very low interest rates. For example, a mortgage of £200,000 a year ago when the exchange rate was €1.5 to £1 would have been €300,000 but now with the exchange rate at around €1.2 the total mortgage is much lower at €240,000 – if the exchange rate moves back to the original figure and people’s budgets are all in pounds sterling then they can not only win on mortgage repayments but also on the property value making this one of the best potential investments there are.

Get professional advice if mortgaging a property in France or overseas

Gambling on changes in exchange rates is a risky business and you should seek proper professional advice in this area but if you require a french mortgage product then this new deal from Conti at just 1.95% variable rate is something to consider.

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