17 June 2020 - French Mortgage News | International Mortgage News | Partners News |

IPF’s (lockdown) French mortgage update

12 weeks into lockdown in the UK and counting! We thought it would be useful to update you on the French mortgage and property markets from an international buyer’s perspective. We also thought it would be great to share some insight into the questions our clients are currently asking as well as their intentions regarding purchasing a second home in France.

Lockdown, COVID-19 and changing working practices….

The unusual circumstances we find ourselves in have given many people an excellent opportunity to focus their minds on what is important in their lives. If you have an office job it’s likely our working environments are going to be radically changed in the future. However many of our new and prospective clients see the potential flexibility of working from home as a significant opportunity and are of the view that this can be done as easily in France as it can be here in the UK. Suddenly, you don’t need to wait until retirement to be able to move permanently to France!

Why wait 2 or 3 years when you can make the dream happen today…

Clients are also revisiting the timeframes around their plans in making their dream of owning a French property a reality.

A number of new and prospective clients have, over the last two weeks, got in touch because they have bought forward their French property purchase plans, having originally planned to move only once they had sold their UK main residence. However, rather than waiting to purchase in cash they are now keen to bring forward their plans, taking advantage of the low French mortgage interest rates in France to purchase their dream property in the coming months. This provides them with additional flexibility in still having a presence in the UK should their French ambitions not work out as originally thought.

The B (Brexit) word hasn’t been mentioned as much over recent months but the impending Brexit deadline, which was confirmed by the UK government last Friday is also re-affirming many people’s opinion that they need to purchase the French property before the UK leaves the EU at the end of the year.

Cash buyers opting to take out a French mortgage to improve their own financial flexibility

We are also being contacted by buyers who had originally planned to purchase in the coming months using cash and who are now keen to take out a French mortgage that they can pay back flexibly at no cost in the future. This has the added advantage of allowing them to retain their liquid cash savings to provide them with flexibility In these uncertain economic times. This is popular for many of IPF’s clients as the benefits of purchasing with a French mortgage are numerous, particularly in these periods of economic volatility.

What is the situation with the French banks?

Some of our new and prospective clients who have contacted lenders directly have told us that they been receiving very mixed feedback in terms of the French banks’ appetite to lend and have reported long response times to their initial inquiries. It is true that there have been a few changes to the lending criteria in recent months. This hasn’t prevented us from obtaining French mortgage approvals (last week we got an application submitted and approved within 6 working days!), having offers issued quickly even for large loan amounts of more than €1 million and, in some cases, on an interest-only basis.

If you are interested in understanding how much you could borrow, and what those monthly payments would be – please use our online tools and calculators.

If you hoping to purchase in France this year, then please get in touch by completing our online quote form. With this information, we will be able to provide you with no-obligation personalised mortgage illustration of the most suitable French mortgage products available to you and your situation.




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