Finance lenders in France recently introduced new changes to their policies that they hope will increase international investment in the country. In the past, buyers from the UK and Ireland could only take a loan from French banks that was worth 80 – 85% of the property value for home that was being purchased. The new polices will raise the loan-to-value amount to 90%, increasing the ability of overseas residents to buy more and larger properties using loans and mortgages.
British and Irish property investors who are looking for overseas mortgages for a holiday home, retirement villa or buy-to-let property will now only have to place 10% of the purchase price as a down payment. Katy Hayworth, overseas mortgage manager for Assetz Finance, says: “This is a long-awaited improvement in French borrowing, and with rates currently starting at 4.45 % and mortgage terms of up to 30 years available, these 90 % LTV mortgages are extremely affordable.”
In addition to the better investment climate, France still remains a top destination for overseas tourists and property buyers. Holiday group First Choice recently reported that skiing holidays in France are still very popular with Britons, making the mountains a prime investment area. In addition to the Alps, over areas that are good choices for buying property include the Cote d’Azur and Languedoc regions. Paris is always a popular place for property investors as tourists and businesspeople continue to flock to the capital city.
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