Posted on 08 February 2013
Mortgage rates hitting historic lows in January mean that fantastic home loan deals are currently available in France, making ski properties more affordable to new buyers and giving existing owners the chance to lower their monthly mortgage repayments.
A fixed rate of just 3.55 per cent for a 20-year term is one example of the offers currently available from French lenders for a mortgage on a second home, leaseback property or for a re-mortgage. Equally competitive deals with variable rates are also on offer.
“It’s not only new buyers who can benefit from today’s favourable mortgage rates,” highlighted Julian Walker of Skiingproperty.com. “I’m sure there are many ski home owners in France who could lower the cost of their monthly repayments if they took the time to re-mortgage their property. Some could potentially save a few hundred euros each month – more than enough to cover the cost of their ski pass for the season!”
As a guide, re-mortgages in France typically take six to eight weeks to complete. To speed up the process, owners should be able to produce an estimated value of their ski property, a redemption statement from their existing lender, and proof of their annual income and that of anyone else included on the mortgage.
Buyers of ski leaseback property are well served in the mortgage market, thanks to French banks being geared up to this form of ownership. “Given that many leaseback properties are built off-plan, lending institutions are flexible on making repayments and, for example, will offer deferral periods for leaseback buyers,” adds Julian Walker. “This means new owners won’t have to make full monthly repayments until they are receiving rental income from their property, or can choose just to pay the interest. Note, they will still have to make life assurance payments.”