Cathar Country Info

Time to buy in France as mortgage rates slump

A recent report we received in the office this week has indicated that mortgage rates in France are at their lowest level since the Second World War, averaging out at 3.3%. According to the article, "Tumbling from the most recent high of 5.15 per cent in November 2008, it is a remarkable turnaround that has seen buyers returning to the market and pushing up prices in Paris and other major cities''. The price of borrowing money for a mortgage is now 10 per cent lower than in December 2008. The average UK mortgage rate is 3.63% - in spite of the fact the UK base rate is 50 points lower than the Eurozone base rate of 1%. In short, British banks are making a considerably larger profit that their French counterparts, quelle surprise !!

Here at Your Place in France Ltd we have helped many clients in recent years obtain French mortgages via our excellent contacts and colleagues at Credit Agricole. A few years ago I helped them create the documentation process to make the mortgage application simpler to complete and understand for overseas buyers. Unfortunately they still have a problem with buyers who have their own businesses as they are unable to understand/comprehend English Profit and Loss Accounts so can only process applications from salaried employees who can provide proof of income. This is a pity as many business owners are seeking a maison secondaire in southern France. Let's hope they 'get with it' soon !

There's more good news for those who hope to supplement their income by renting out their property in France. Letting agency French Country Cottages report that bookings for 2010 were up by 15% on 2009. Not surprisingly, Languedoc Roussillon was very near the top of the list for holidaymakers.

Another recent article highlighted the fact that Aude is the most-searched department on a well known French property website. The percentage of searches by Department made good reading for those of us lucky enough to live and work here: Aude 47% Gard 6% Herault 21% Lozere 2% Pyrenees Orientales 24%. Aude has always represented good value for money property wise over its neighbours Herault and the PO as well as a fabulous place to be. I spend a lot of my time waxing lyrical about the Aude and recently pursuaded buyers who had written off the South of France as being ''too crowded'' to give serious thought to our area where roads and beaches are quiet and there is calm and tranquility wherever you look. I'm happy to report they've abandoned their idea of a property in the Dordogne and I'm meeting them early in the New Year to see a selection of properties in the Durban area. Voila !

Tony Mole, Managing Director. YOUR PLACE IN FRANCE LTD