Traditional methods of buying property in France are changing as UK buyers begin to step away from UK lenders to finance their homes in France. Assetz® property investment adviser’s report that the wider variety of financial products available to the UK buyer in France have led to nearly a third of Brits opting for mortgages from local providers.
It appears that higher UK mortgage interest rates and the complications of paying for a mortgage in Euros whilst earning in GBP sterling are undoubetly a factor in this development. Currency brokers can book good exchange rates for long periods in advance therefore protecting the French home buyer from the uncertainty of the currency markets. Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the sterling amount that you will have to pay .There are various organisations that can convert your sterling into whichever currency you need. Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service. Foreign exchange companies like Moneycorp often offer a proactive service to their clients, using their expertise to monitor exchange rates on the clients' behalf in order to achieve the best possible rate of exchange.
UK French home buyers save money
BRENDA DURKAN, 46, and her husband Tony, recently bought a house farm near Limoges in France.
The couple, who run an ironmonger’s shop in Hertford, are employing a French builder to do renovation work, so they are paying him in euros, and they had to transfer money over for a purchase.
They chose to use Moneycorp because the rates they get are better than those from their bank. They have budgeted 100,000 euros – about £68,000-for the renovation work, and should save about £4,000 by using Moneycorp rather than their bank.
Brenda said:’ not only are Moneycorp’s rates higher, but we also know what the rate is before we move the money’.
More on Money transfers to France https://www.homesgofast.com/Currency/money_transfer_france.php
Mortgages in France
Overseas mortgage specialist USHE Overseas Ltd director Anna Brewer ‘Lending in France is based on affordability and does NOT allow for rental income from the property. The information required by the bank aims at defining your actual income and thus your ability to repay the mortgage. Loans are granted as long as the payments do not increase your debts unreasonably. As a rule expenditure should not exceed one third of your gross income.’
More on French mortgages here https://www.homesgofast.com/articles/France/Mortgages_in_France/