Property’s abroad with France at the Top of the List

With the sterling hitting a seven year high against the euro, these are ideal buying conditions are tempting the Brits back to the French Market.

This is the first time mortgage rates are at a 60 year low and prices back at the levels they were in 2007 its perhaps no surprise that France has accounted for 46% of Conti’s mortgage enquiries over the last four months.

Rhone-Alpes region best known for its Skiing properties are proving to be the most popular pulling in the most buyers.

However, this steady increase of the value to the pound against the euro, which has reached a 7year high of €1.34 last week, is effectively shedding tens of thousands of pound off buyer’s budgets.

With the pound currently hovering around €1.33, a €200,000 home in France now costs £150,376 compared with £175,439 back in the summer of 2013 when the pound was worth €1.14. That is a saving of £25,000. Investors, full of fresh optimism, are bringing their plans forward and snapping up bargains while they can.

Clare Nessling, director at Conti, says:” Over the last three years, but during 2014 in particular, Rhone-Alpes has been growing in popularity, with more than 4 in 10 French Mortgages being taken out to purchase a ski property in the region. And also the department of Haute-Savovie, where popular resorts such as Chamonix Morzine and Les and Les Gets are located, are at the top of buyer’s lists.

The French Ski market is most popular with the British but at the same time is also extremely well supported by the domestic market, making rental opportunities very good. Another bonus is that it’s also very accessible wither by air, train and car and the culture is familiar, which British buyers like. When you combine this with the current mix of ideal buying conditions, including the favourable exchange rate, it’s basically a great time to buy a French ski property.”

French mortgage rates are still at their lowest in decades, with deals starting at just 2.2% for variable mortgage over 10 years, and 3.25 per cent for a 25 year fixed-rate mortgage. Unlike many countries where the best rates are limited to those with the biggest deposits, both of these deals, and many others, are available for mortgages of up to 80per cent loan to value.

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