For the first time since 1964 over half of the mortgages secured are at a rate lower than 3.5%.

Since November 2008 the average mortgage rate has dropped by nearly two base points which has significantly stimulated the property market. Interestingly the average loan terms have also fallen to 17 years and four months.

The amount loaned by French banks has increased by 17% over the same period in 2009 but is till far short of the record amount loaned in 2007.

Since the end of the 1990s house prices have risen 140% and since 1964 an amazing 22 times, well ahead of the rate of inflation. According to Les Echos property prices in the first 6 months of 2010 increased by 8.5% – still only re-confirms the typically solid performance of the French property market in 2010.

Source: A study published in Le Figaro

Over 70% of foreign purchases in France are by UK buyers, followed by the Italians, Dutch and Belgians. Figures for Russian purchasers are not available but are estimated to be considerable.

Of those non-residents purchasing in France, 70% are for second homes, with 17% intended as primary residences. Low French interest rates and the strengthening sterling are the 2 major factors in driving these sales through.

There are some great deals to be had within the French property market and the South of France is leading the way. Local estate agents are saying the number of solid enquiries over the last few months have increased. 2010 is still proving to be a buyers market and when couple with some great French Mortgage Interest rates and the strong sterling – now is the time to grab your dream holiday home in the South of France

1. Getting a formal pre-approval letter from French Mortgage Xpress can tell you the maximum a lender is likely to loan you for your new French Mortgage, which will help you narrow down your property search to within the price range you can afford.
2. You can get an idea of what your monthly re-payments will be for your French Mortgage on your new property in France.
3. You’ll have more credibility with the real estate agents and with vendors if your French Mortgage is pre-approved. Some agents won’t take you seriously until you have the pre-approval. They don’t want to waste their time, or yours.
4. French Mortgage loan approval takes time. If you wait to apply for a French Mortgage after you’ve actually made an offer, you could lose out on the property to someone else who already has the finance in place or has their French Mortgage pre-approved.
5. The lender can often lock in an interest rate, which protects you if rates rise while you are looking for your new property.
6. Pre-approval gives you at least some peace of mind, which you will appreciate during the often stressful process of buying a home, especially one in another country.

Don’t confuse loan pre-approval with pre-qualifying for a French Mortgage. Lenders will often pre-qualify a would-be buyer based on what you tell them about your income, employment and basic credit information, like how much you currently owe on credit cards or other loans. The lender is not agreeing to loan you money or committing to an interest rate. But the process can tell you whether it makes sense to move forward in your home search.

Loan pre-approval is a more formal process. You’ll need to provide your Independent French Mortgage Broker a lot of information about yourself, especially about your income and outgoings and general spending and saving habits.

If you get pre-approved for your French Mortgage, you’ll receive a letter telling you the maximum loan you can get and some sample interest rates you could qualify for.

This process is of particular importance when your employment status is not the norm,
as within the Yachting Industry and maybe you have no taxable income.

French Mortgage Xpress has been working within the French Mortgage field in France since 2004 and has assisted many clients within the yachting industry to purchase properties in France. Knowing some of the difficulties that a ‘non-tax status’ can bring, French Mortgage Xpress are perfectly placed to offer you a bespoke product designed specifically for people working within the yachting industry and looking for a French Mortgage.

Loan Characteristics
Minimum Loan Amount: €100,000  Maximum €1,000,000
Minimum Down-Payment: 20% of Purchase Price
Interest Rate: 2.45%
Term: 10 to 30 years

LOAN APPROVAL WITHIN SEVEN WORKING DAYS

Documents Required:

• A photocopy of each borrower’s passport.
• A photocopy of each borrower’s birth certificate.
• Photocopy of marriage certificate if applicable.
• A letter from your captain or management company specifying your position, length of service, and monthly income. If you have been there less than 2 years please also provide a copy of   your previous work contract .
• Justification of your personal contribution (proof of down-payment) eg. bank account statement, building society statement showing you have the funds for down-payment,
• Photocopies of the last 6 consecutive monthly bank statements showing income, loans, mortgages & regular outgoings .If you have more than one bank account please indicate clearly where your salary is deposited each month.
• Details of any existing loans and mortgages (schedule of repayment),
• A copy of your “Compromis de Vente” or Reservation Contract of the property you intend to buy.
• Signed completed application form and health questionnaire.

This proximity to the UK has made French Property one of the most popular choices for Investment Property Buyers. The French property market is extremely diverse and offers much to the potential Investor in Overseas Property. The South of France is a prime example and the airports of Nice and Marseille offer tremendous access to the French Riviera all year round and are serviced by the budget airlines such as Easyjet and Ryanair.

The good news for buyers of Investment Property in France is that there is an abundance of property all over the South of France; a restored Mas, stylish new builds, a pieds-a terre, family villas or even winter sports apartments. Capital appreciation is good and rental yields are strong. The Cote d’Azur is second only to Paris in price, but you don’t need a fortune to buy. A good rental yield from an investment property can be achieved with the many tourists and the large quantity of conferences throughout the year especially in Cannes, making the South of France an excellent choice for your Overseas Property Investment.

Unlike the UK, a long history of prudent lending in France (lenders do not allow borrower’s total outgoings on finance payments to exceed 1/3 of their total gross monthly income) has meant mortgage finance in France is still readily available and great value. Coupled with an approximate discount of 10% on French property prices compared to a year ago – there is no better time than 2010 to acquire an Investment Property in the South of France.

For second home owners in the South of France and property investors, 2010 is the perfect opportunity to buy into some of the most desirable towns and cities such as Cannes, Nice and Antibes in the South of France. The French banks have not suffered like their UK counterparts, meaning they are more inclined to lend to the Foreign or Non-Resident Property Investor who might not have considered France before. Coupled with some extremely attractive loan rates (2.7% interest only for non-residents plus, the ability to pay down at any time with NO PENALTIES offered by French Mortgage Xpress) France is fast becoming an astute investment for Non-Resident and Foreign Property Investors.

Considerable mortgage product innovation by some leading banks such as Micos Banca and BNP coupled with a diverse range of property available in the South of France that can deliver good solid yields and investment growth is driving the UK property investor to look across the channel. Properties in the South of France remain in the buyers favour, and 2010 could give the Foreign Property Investor a firm foothold within the French property market.

French Mortgage Xpress, an English speaking mortgage broker based near Cannes and Nice in the South of France has helped over 500 International Property Investors and second homeowners secure finance since it’s inception. French Mortgage Xpress has built it’s reputation on an honest, reliable and speedy service. Their relationship with many of the top French banks is superb giving them the opportunity to deliver a simple, speedy and first class service for all your property finance requirements in France.