13 March 2019 - French Mortgage News | International Mortgage News | Partners News |
What impact is Brexit having on French Mortgage rates for Brits buying in France?
Brits are still buying second homes in France
With all the political and economic noise in the media it can be confusing trying to judge the true level of interest amongst UK buyers of French second homes. There is a lot of talk of a slowing UK property market and low consumer confidence may be delaying decisions on major purchases.
However, whilst plenty of would be buyers are being cautious, there are a surprising number of UK buyers of French second homes that are pressing ahead, despite the impending Armageddon that is depicted in the press around Brexit.
Furthermore, the encouragingly high level of enquiries suggests that once the issue of Brexit is settled and whatever direction that agreement takes, there are a lot of buyers sitting on the sidelines ready to take the plunge.
French Mortgage rates and Eurozone interest rates will stay low
A resolution to Brexit is likely to cause a strengthening of the sterling to euro exchange rate, even if a no-deal outcome generates a short term weakening. What is more, news from the European Central Bank (ECB) announced last week suggests that French mortgage rates and Eurozone interest rates are likely to stay lower for longer. Providing another boon for any buyers of a French second home if they are considering financing the purchase with a French mortgage.
The ECB announced this week an extension to their economic stimulus by making cheap loans available to Eurozone banks through their ‘Targeted Longer-Term Refinancing Operations’. The ECB is essentially paying banks to increase their lending to the wider economy which should improve the availability of funding and thereby reduce interest rates and French mortgage rates in general.
Downgrades to economic growth in the Eurozone and the US and China in the past week have also reduced the outlook for interest rate rises across many of the world’s major economies. The likely impact? Borrowing costs are likely to remain lower for longer.
Purchase with a French Mortgage to reduce your exchange rate exposure
If you’re thinking about using a French mortgage to finance the purchase of a property in France or you’re a cash buyer who is interested in reducing the exchange rate exposure of purchasing a Eurozone property using sterling assets, make sure you check out the latest French mortgage rates here and use our online French Mortgage Calculators to work out your budget.
You can also talk through your plans with one of our French mortgage consultants by contacting us on 0207 484 4600 or requesting a quote online here.
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