There has “never been a better time” to buy in france
Speaking to The Independent, SPF Private Clients said: “Both the capped and fixed options allow borrowers the security of locking into rates which are historically the lowest we have seen.
“A capped product with 1 per cent cap over the initial rate for seven years starts at 2.75 per cent, so during this time the maximum interest rate would be 3.75 per cent, for example.”
Indeed, Brits continue to treasure France as one of their preferred holiday home markets. Now, though, areas such as the Dordogne and Provence-Alpes-Côte d'Azur have seen prices rise, prompting buyers to look further afield at areas such as Gascony and Bergerac. Tarn, in the Languedoc region, is highlighted as one increasingly popular hotspot.
"It is a hidden and unspoilt part of France. Very low population density offers a lot to Britons, it is rural without being backward,” one agent told the newspaper.
Either way, with mortgage rates at a record low, buyers can be sure of a bargain.
Other mortgage desk news from around the world:
The Netherlands housing market underwater
The Dutch housing market is underwater, according to new figures. The Netherlands real estate market saw a strong boom right up until 2007, with prices surging 250 per cent in real terms over 15 years. The 2008 crisis hit – and hard.
Sales plummeted 50 per cent last year compared to the 2007 peak, but with prices expected to continue falling for some time before they rebound, many houses are now underwater.
The problem is partly exacerbated by the Dutch fiscal system, which charges tax on mortgage interest payments. Encouraging borrowers to keep on borrowing, the Netherlands now tops the worldwide rankings of residential mortgage debt, according Joep Ketelaar, former CEO of Funda. Indeed, over 100 per cent of Dutch GDP is in mortgage debt, more than double that of Germany or France. With homeowners continuing to borrow, many now have mortgages worth more than the value for their homes.
“It will take many years of stable policymaking, and hence stable government, to get the Dutch out of their social housing and off their addiction to debt,” Ketelaar writes for Property Portal Watch.
UK mortgage rates on the up
UK mortgage rates are starting to increase. The Yorkshire Building Society has risen its five-year fixed rate from 2.44 per cent to 2.49 per cent – and now to 2.59 per cent. They are not the only lender to hike their rates, though, with the West Bromwich building society also removing their five-year fixed rates.
Broker London & Country warns This Is Money: “Rates are not necessarily going to rocket up, but borrowers have potentially got used to the idea that fixed rates are getting better. Borrowers shouldn’t get complacent. I wouldn’t hang around waiting for lower rates as we may have seen the bottom.”