20 June 2017 - French Mortgage News | International Mortgage News | Partners News |
Reduce the Sterling cost of buying in France and don’t let the exchange rate delay your plans
Each of the past three summers has left the UK population in a political limbo courtesy of the 2014 Scottish referendum, 2015 UK General election and the UK’s 2016 EU referendum. The result of the snap-election on June 8th (that surprised many political commentators) has ensured that the summer of 2017 is likely to be much the same!
Meanwhile, following Emanuel Macron’s victories in Presidential and Legislative elections, the mood and optimism in France goes from strength to strength. This is an encouraging sign for the French economy and property market.
Here we share some top tips that our clients have used in past periods of political or economic uncertainty to ensure their French property dreams are not derailed!
For many UK-based buyers of French property the Sterling-to-Euro exchange rate has the biggest impact on the sterling cost of buying a second home in France. During previous periods of sterling weakness (against the Euro), including immediately following the referendum result, many buyers who had been planning to finance the purchase using sterling (cash) decided instead to finance the purchase by borrowing in euros to reduce the sterling cost of completing their French purchase.
Here, IPF’s Felicity Sullivan explains how it works:
The following article provides further background to this idea in addition to a case study for one of IPF’s clients that featured in The Sunday Times: The Sunday Times article