Could you afford not to get a mortgage on your Alpine property?

Posted on 29 July 2013

A weak pound combined with very attractive mortgage rates mean that for some buyers of property in the Alps, getting a mortgage could make better long-term financial sense than buying outright.

Fixed rates in France are at unprecedented lows, meaning that qualifying borrowers with a deposit of 20 per cent can currently fix at 2.90 per cent for 15 years, or in some cases 2.5 per cent for 10 years. Fixed rates bring the peace of mind of knowing that your mortgage repayments will remain the same for the life of the loan.

When you combine these historically low rates with a strong euro, you can see why it could be beneficial to consider a French mortgage now. Why? Because there is a likelihood that the exchange rate will slowly move back in favour of the pound, and when this happens it means a euro mortgage – and its repayments – decrease in value in terms of pounds for a British owner, giving them more control over it.

Seeing the loan against your property in, for example Les Gets or Courchevel, shrink in value in your own currency, thanks to nothing more than exchange rates will make visits there all the more enjoyable.

Don’t forget using a specialist mortgage broker is often the best option for British buyers in France – and always check all of your options before deciding to take out a mortgage. Brokers will be able to assess your individual requirements and circumstances, matching them against the mortgage products available from a selection of French lenders. And, once you are fully committed to buying in France, be sure to ask your broker to obtain an official agreement in principle with a French lender before you start viewing.