Rise in French holiday home mortgages

People buying holiday homes in France are increasingly taking out French mortgages rather than buying with cash, reports Assetz Finance. France is the number one British choice when it comes to buying a second home.

Traditionally, the majority of British purchasers of French holiday homes have purchased their property outright, without any loans, using savings, inheritance or equity release on their UK property to finance the purchase.

However, over the last twelve months, Assetz Finance has noted a rise in the number of British holiday home buyers opting for a French mortgage, from approximately 33% in 2005 to 50% in 2006, as people begin to recognise that they are both readily available and easy to use as a viable method of finance.

Katy Hepworth, Overseas Mortgage Manager at Assetz Finance comments:"In the past French mortgages were less widely available and were renowned for being difficult to secure, meaning most holiday home buyers did not even consider using them and instead struggled to finance a cash purchase from the UK. "This is no longer the case, however, and a considerable number of British purchasers in France are starting to take advantage of French mortgages which are consistently 1 - 1.5% cheaper than in the UK."