MORTGAGES
Florida
Prices have fallen by as much as 60 per cent in some areas since 2006, with properties now being sold for less than the cost of building. Unsurprisingly, given the US’s economic slowdown, unemployment concerns and continuing high levels of mortgage defaults, banks have been very reticent to take on new business over recent years. According to Bill Cowie, president of the British Homes Group (BHG) in Florida, most sales now are for cash. “There are no UK lenders for Florida properties, but a few US lenders are putting their toes back in the water again with foreign national homebuyers,” he says. Miranda John agrees that lenders are somewhat
France
France’s economy is relatively secure – but again, mortgage availability is very much a refl ection of where you’re trying to buy, says Miranda John. “Older properties especially at the lower end of the market in rural areas – places like the Dordogne and Charente, which Brits have traditionally favoured – have suffered, as owners want to sell, but there have been few buyers. The banks are not keen to lend, because it’s hard to value these more idiosyncratic properties, they’re worried about defaults, and resales can take so long,” she explains. As a result, banks have been reducing the LTV on offer, and in some cases refusing to lend at all. In contrast, the south of France,
Paris and the Alps have all fared much better; prices have fallen, but with a more dynamic, international market
THE BEST DEAL IN FRANCE?
FPF is currently offering a 20-year fi xed rate deal at 3.7 per cent, on up to 70 per cent LTV. Alternatively, for those game for the uncertainty of a variable rate, FPF has a 20- year tracker mortgage of 2.6 per cent (base rate plus 2.1 per cent) on up to 80 per cent LTV.
www.frenchprivatefi
nance.com aplaceinthesun.com 33
resales are much easier and banks are happy to lend. There are also more private and international banks operating in these areas. “Overall, with soft property prices
and excellent long-term mortgage deals, it’s an excellent buying opportunity if you have the wherewithal,” comments John Busby, director at French Private Finance (FPF). Leading lenders include BNP and Crédit Foncier. “Long-term fi xed rates – which have
always been popular in France – are at historical lows, with 20-year fi xes from 3.7 per cent and lifetime trackers at margins (above Euribor rate) of around 2 per cent,” he says. Moreover, banks are lending at up to 85 per cent LTV. In some cases, adds Nessling at Conti, they may offer up to 100 per cent loans.
keener now. “There are good deals out there, though it depends where the property is: the most attractive locations and best rental opportunities are near the major theme parks, smarter districts and the sea.” Fixed rates, running for anything from fi ve to 30
years, are the preferred arrangement in Florida, usually on a repayment basis – but the interest rate and loan terms may vary according to the type and location of the property. Typically, a 30 per cent deposit is required, with interest rates ranging between 4 and 6 per cent, Cowie adds.
THE BEST DEAL IN FLORIDA?
If you have a 30 per cent deposit, BHG has fi ve-year and 30-year fi xed-rate deals for foreign national buyers at 3.875 per cent. They are available either direct through the developers or through BHG’s lender contacts.
www.BritishHomesGroup.com
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