Low mortgage rates boost brits buying overseas

Antibes, France (Photo: Jack French)

"Confidence is back," Conti has declared follow a 90 per cent increase in enquiries year-on-year in the first quarter of 2014.

The company has seen a sizeable shift in interest for Spain in particular over the last six months, with the country accounting for more than half (58 per cent) of enquiries received - the first time that a single country has accounted for such a large percentage of enquiries.

Prices in some of the most desirable areas of Spain have fallen by up to 50 per cent since 2007, but after a very difficult few years, prices are starting to creep back up in some areas, and people who have been watching the market are snapping up bargains while they can. 

Mortgage rates in France, meanwhile, are currently at their lowest in more than 60 years. Combined with a slower property market pushing prices down, easy access from the UK and good rental yields, France, remains a popular safe haven for Brits. Indeed, it still accounts for one in three (29 per cent) enquirie received by the mortgage broker.

Clare Nessling, director at Conti, says: “Signs of confidence returning, especially in relation to the Spanish market, started appearing last year. But the first three months of 2014 have been particularly encouraging. Mortgage rates are very low, the pound has been getting stronger, and prices are still at bargain levels in many areas. It’s a great time to buy and people who have been putting their plans on hold for the last year or two are taking advantage of the favourable conditions open to them.”