Due to historically low French Mortgage Interest rates – French Mortgage Xpress have seen a sharp rise in enquiries over the past few months. There are some very attractive fixed rates on offer for standard variable French Mortgages which is driving enquiries into the French Mortgage Xpress website.

Matt Frost from French Mortgage Xpress says “Now the summer is over and the kids are back to school - we are expecting to see an increase of enquiries from people that may have viewed properties whilst on holiday and are now thinking of buying a second home or an investment property in France”.

Mortgage Interest rates in France are at a historically low level. The introduction of some new fixed rates from between 3.3% – 3.9% (depending on the term of the French Mortgage from 10-25 years) is only going to drive more non-residents to look towards France for an investment into property.

House prices are at a value close to those in 2005 but will start to creep up in value over the next quarter. These last few months of 2010 are perfect for securing that 2nd home in France or indeed a revenue generating property investment in France.

“The last few months of 2010 are going to be a great time for non-residents looking to jump onto the property ladder in France, and secure a low fixed rate French mortgage” says Matt Frost.

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For the first time since 1964 over half of the mortgages secured are at a rate lower than 3.5%.

Since November 2008 the average mortgage rate has dropped by nearly two base points which has significantly stimulated the property market. Interestingly the average loan terms have also fallen to 17 years and four months.

The amount loaned by French banks has increased by 17% over the same period in 2009 but is till far short of the record amount loaned in 2007.

Since the end of the 1990s house prices have risen 140% and since 1964 an amazing 22 times, well ahead of the rate of inflation. According to Les Echos property prices in the first 6 months of 2010 increased by 8.5% – still only re-confirms the typically solid performance of the French property market in 2010.

Source: A study published in Le Figaro

Wondering why this form is so short?

Many companies might ask you to complete a long and laborious online application form.

We don’t – Why? Because from the basic information requested on the form above we can look through our long list of potential lenders, narrow down the search to meet you initial requirements and send you a couple of preliminary options. This simple approach will save you and us time.

Once you have received this primary quotation and want to move forward – we will require more financial and personal information to enable us to recommend the correct French Mortgage product from our long list of partner banks. We can then send you one application form to complete. You send this back to us with all the required documents. We double check the dossier and forward the complete file to the lending back for approval. Easy as 1, 2, 3!

Privacy: All the information gathered by French Mortgage Xpress will be held in the strictest of confidence. French Mortgage Xpress does not share this information with any other party. The information contained in the Quote Request form is only used to enable us to furnish you with a simple French Mortgage quotation.

The product is only available for new purchases, not for remortgages or equity release. The installment amount may be changed at the borrower’s request after the 1st year of repayment. Mortgage holidays are possible at any time after the first year of repayment, (subject to agreement) -  up to 5 times during the life of the mortgage, with a 12 month repayment period between holidays. This will however, consequently increase the term of the mortgage.

Early capital repayments are possible at any time in minimum amounts of 10% of the original capital borrowed. The capital reduction can cause a reduction either of the instalment or of the term of the loan, depending on your choice. There are no penalties for early redemption.

Terms:

• 2.60% with a 20% deposit
• 2.50% with a 30% deposit
• 2.50% with a 40% deposit
• Maximum 30 year term
• Payment holidays (upto 5)
• Capital repayments – no penalties
• Minimum loan amount €200,000

This offer runs from 24 June 2010 until 30 Septemeber 2010. Applies to mortgages of €200,000 and over. €500 cash back offers refunded upon successful completion on the purchase

Using an Independent Mortgage Broker is an effective way of getting a French Mortgage package to suit your needs without having to spend hours of your time searching and trawling around the high street banks or internet – in fact, you can do everything from the comfort of your own home in the UK. This is even more important when looking for a mortgage in a foreign country. When you use the services of an Independent Mortgage Broker, you simply cut out all the time and work involved in finding a mortgage to suit your own circumstances – and it won’t cost you a cent to do it. A good French Mortgage Broker will be able to source a wide range of mortgage deals on your behalf, and will then put forward the ones that offer the best value in terms of interest rates and monthly repayments to suit your specific needs. All you have to do is complete one simple application form, which saves you the hassle of having to complete an application for each bank in which you are interested.

An established French Mortgage Broker will already have formed links, contacts, and relationships with a wide range of French Mortgage lenders. The broker will therefore know which lenders will cater best for your particular needs. The team at French Mortgage Xpress has regular meetings with the various bank personnel and this in turn helps to speed up the application process and overcome any potential delays.

Using a local French Mortgage Broker is a great way to get a good value, affordable mortgage that is tailored to meet your needs and circumstances. It is also an excellent solution to getting a good mortgage deal without having to put in the hard work yourself especially if you’re based in the UK or outside France.

French Mortgage Xpress has been operating it the South of France for over 6 years. The personal relationships they have built up with all the major lending banks in France offers the purchaser a huge advantage. Being on the ground and having the ability to speak and meet the lending bank personnel undoubtedly helps to move the application forward at a greater speed.

French Mortgage rates will also vary depending on the type of loan, interest only and fixed rates are generally higher than the variable rate. Very much like the various rates in the UK

Check with an Independent French Mortgage Broker in France like French Mortgage Xpress on the current French Mortgage rates available. Make sure you understand all penalties associated with switching from one type of French Mortgage to another.

Euribor is short for ‘Euro Interbank Offered Rate’. The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds from one another. There are different maturities ranging from one week to one year. The rates provide the basis for the price and French Mortgage rates in the Euro zone. Most variable French Mortgages are pegged to the Euribor 3 months, however, in certain cases the French Mortgage provider can opt for the one-month or the one-year rate.

Currently in 2010 these French Mortgage rates are at historical lows. For more information on the Euribor see www.euribor-rates.eu

As a general rule, it is possible to release up to 70% of the net value of your French Property – i.e. the total value less any existing French Mortgage on the property. Meaning, that if you have a property which is valued at €500,000 with an existing French Mortgage of €200,000 you would in theory be able to release up to €210,000 – dependant on meeting with various French bank requirements. An independent evaluator will be hired by the bank to give an evaluation of the French Property.

With regards to qualifying for the equity release the bank will apply the same rules as for obtaining a standard initial French Mortgage. You will need to prove that your outgoing obligations, including the new French Mortgage, do not amount to more than 33% of your earnings. French Mortgage Xpress will ask you to complete our ‘pre-qualification form’ prior to asking for all of the requisite documentation. This will give us some information on you and enable us to ascertain which bank will best suit your needs, but also to check existing debt levels to ensure that a French Mortgage is possible. This will save both you and the French bank time and effort.

It is far easier to obtain an equity release French Mortgage if you are employed rather than self-employed.

For an employed individual the bank will not necessarily ask for the purpose of the equity release through the French Mortgage, whereas for a self employed individual the funds must be destined to pay off an existing loan (i.e. perhaps a loan taken out in the UK to purchase the property in the first place) or be destined to purchase an new property in London or the UK. All supporting documentation in relation to a new house purchase or an existing loan will have to be provided to the French Bank.

Anyone looking into obtaining an equity release through a new French Mortgage should be aware that upon your French Mortgage being granted you will be required to visit your notary (this will be the notary stipulated on the deeds to the property) in order to obtain the funds. As was the case with the initial purchase of the property this visit will incur a charge, as the notary needs to register the new French Mortgage with the land registry. The amount of this charge will be conveyed to you by your notary.

Any additional owners or people with an interest in the property as listed on the deeds of the property will need to be aware of the new French Mortgage, even though it will not affect their ‘portion’ of the property and will act as a caution hypotecaire. They will need to sign the French Mortgage offer where indicated and they will also be required to present themselves before the notary for signature before the funds will be released.

Clearly in a scenario such as this, only 70% of the proportion of the value of the property relating to the individual wishing to borrow is available for equity release through the French Mortgage.

If you are interested in equity release through a new French Mortgage, complete the French Mortgage Xpress Quotation Form. We’ll respond to you within 1 working day! Or, simply call us now on +33(0)92.98.80.78

The list of documentation required is the same as for a standard loan with the addition of:

• The compromis d’achat.
• The title deeds (titre de propriété) of the selling house
• Mandat de vente of the selling house

The bank will also require contact details for both houses in order to arrange for an evaluation to be done.

If the old house is sold within 6 months then the interest charge is reduced considerably on the bridging loan.

Notary’s fees will apply to both the old property, as land registry fees come into force with the new loan, and the new property.

As with all forms of French Mortgages, Mortgage protection insurance is mandatory and, depending on the level of the loan medical tests may be required.

French Mortgage Xpress Tip: Current bridging loan rates are as low as 4.5 percent! Remember, a French bank cannot offer a bridging loan on a UK property you may be in the process of selling.

Wondering why this form is so short?

Many companies might ask you to complete a long and laborious online application form.

We don’t – Why? Because from the basic information requested on the form above we can look through our long list of potential lenders, narrow down the search to meet you initial requirements and send you a couple of preliminary options. This simple approach will save you and us time.

Once you have received this primary quotation and want to move forward – we will require more financial and personal information to enable us to recommend the correct French Mortgage product from our long list of partner banks. We can then send you one application form to complete. You send this back to us with all the required documents. We double check the dossier and forward  the complete file to the lending back for approval. Easy as 1, 2, 3!

Privacy: All the information gathered by French Mortgage Xpress will be held in the strictest of confidence. French Mortgage Xpress does not share this information with any other party. The information contained in the Quote Request form is only used to enable us to furnish you with a simple French Mortgage quotation.