French mortgage market set for record year

The French mortgage market is set for a record year, according to lenders, as the country remains attractive to foreign borrowers.

The positive outlook arrives as France begins to enjoy some optimism regarding the economy too, with upbeat manufacturing and service figures suggesting that that their might be some marginal growth in the third quarter of the year, although labour statistics suggest "continued gloomy times ahead".

Regardless, France has enjoyed significant appeal to overseas buyers this year, thanks to the weak euro, favourable prices and the strong dollar and pound. With the ultra low interest rates in the UK and US being held by the relevant financial authorities, the country now expects recovery to continue at the same pace, bolstered by the seasonal rush in the lead-up to Christmas.

"Whilst any upward movement in interest rates by the Fed or Bank of England will only make French property cheaper to foreign buyers, such a prospect has not caused investors to readopt the wait-and-see approach of 2010-2011," explains John Luke Busby, Private Clients Director of French Private Finance.

"If anything it has done the opposite, reminding them of the great market conditions that have led 2015 to be a record year for non-residents buying in France."

Indeed, the firm's figures report a 50 per cent increase in the amount financed this year so far compared to 2014, with a 40 per cent increase in the average loan amount to over €450,000.