Eurozone expected to exit recession on Nov 13

The EU statistics offices anticipated to announce that the 26 nations that make up the Eurozone will officially exit recession and return to growth. In fact economic confidence in the Eurozone one was at it highest levels for a year in last month due in to increases in factory orders and production.

Inflation is trending down with no increases to the ECB benchmark rate anticipated until 2010 when a .25% rise is priced into the markets currently. Of course things can change and new information becomes available all the time. As in the UK, Eurozone home loan lending is up with these mortgage approvals boosting confidence in construction on both sides of the channel.

There is still uncertainly in the market which is good news for those looking to negotiate discounts for French properties or borrow money from French banks as the lack of inflation is keeping interest rates low. For a list of the best French mortgages available just click the link.

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French home loans: Finance for US buyers of French property

Every American has a second home in France - Thomas Jefferson

The historical links between America and France are well known, from the Statue of Liberty to the connections of WWII. The fascination of Americans with France is understandable drawing many visitors and prospective homeowners each year. The numbers of American buyers in France has been increasing in recent years but with the current economic conditions and the difference in the exchange rate, enquiries from the U.S. have dropped significantly over the last 18 months. Now that lending conditions in France are better than most developed countries a French home loan is often the best bet for buyers from the United States of America as a way to finance a property in France. Given the strength of the Euro it definitely makes sense to finance the purchase in France with a high loan to value French home loan. As noted elsewhere on this blog, there is currently a lot of competition in the market for home loans in France with several banks reducing their rates but up to 15%.

Although French banks do favor borrowers from the EU over those from other countries, there is generally no problem in getting finance for a French property for a US citizen. There is generally no additional paperwork required in order to secure finance in France. Opening a bank account in France is simple with Athena Mortgage's French current account service, a bank account can be opened within 24 hours and the newly launched French Paperwork Assistance will also take all of the hard work out of owning a property in France.

To find out more about French home loans and finance in France for U.S citizens please visit www.athenamortgages.com

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Fastest French Mortgages-How quickly can you get a mortgage in France?

The key to getting a mortgage quickly in France is to build up the required documents to support you French mortgage application. One of the longest delays in processing a mortgage application in France is getting a complete dossier to the bank. An experienced French mortgage broker can help you to organize the information and documents into a format that is acceptable to the majority of French banks.

As with everything in life, there are often specific circumstances that lead to a mortgage being required urgently and perhaps not all the documentation is not available immediately. In this case, a good French mortgage broker can significantly increase your chances of securing a mortgage in France quickly by placing your application with a bank that requires less documentation or can proceed to make an offer without all the documentation in place.

In general the stages to getting a French mortgage are as follows:

1. French mortgage application documentation complete
2. French Bank receives the completed file
3. File is studied and a decision in principle is issued
4.Depending on the connections the broker has a formal offer can be issued within 24 hours.
5.Once you receive the offer you may accept it after a 10 day cooling off period.
6. You have you offer confirmed and ready.

So all things being equal the fastest French mortgage from beginning to end would be 12 days but a slow broker could make the process much much longer. Athena Mortgages has offices in London, Paris and Dublin and may in exceptional cases be able to move slightly faster. It is important to note that in most cases if you do not securing financing for the property in France you have signed a sales agreement for, there is usually the chance to receive your deposit bank, providing you have respected the appropriate timing stipulations. However, if you have a French mortgage problem, no time to lose, maybe you should hire the A(thena) team. Pelase follow this libk for further information if you want a French mortgage now.

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Latest rates for fixed and variable rate mortgages in France decrease

The latest news from France is that rates are decreasing due to competition for mortgages between banks. One of the biggest specialist French mortgage lenders has recently dropped its rates by 15%. This 15% rate drop is anticipate to spread through banks that offer mortgages in France and interestingly the drops apply to both the spreads/margins the bank charges above the Euribor* on the loans and the initial rates.

For the variable repayment French mortgage, the rate which was previously 2.8% and has now dropped to 2.3% with a margin over the Euribor* of 1.3%. For a five year fixed rate French mortgage the rate was 4.25% with the current rate now standing at 3.95%.

These are some of the best rates for mortgages in France currently and also compare very favourably with rates for mortgages in the UK. Having been personally looking for borrowing in the UK recently the remortgaging options where all for fixed rates over 5% and for a variable rate mortgage the spreads/margins over the base rate were all over 2% for a 75% LTV mortgage.

To find out what the latest, best rates are for fixed and variable rate mortgages in France just visit the best French mortgage rates section on the Athena Mortgages website

*The Euribor (Euro Interbank offered rate) is the equivalent of the Bank of England base rate in the UK. Most French mortgage rates are pegged to the Euribor which, unlike the Bank of England base rate, fluctuates everday. Essentially, the Euribor is the rate at which European banks will lend money to each other for period of time e.g.3,6 or 12 months. as of time of writing the current Euribor rates are as follows. 3 month 0.730%, 6 month 1.019% and 12 month 1.254%.

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Fast French bank account opening at distance

Choosing a French bank account can be a bit daunting but the general rule is that you definitely get what you pay for. The free bank accounts generally do not offer Internet banking in English or have customer service advisers who speak English. It is definitely worth considering a fee based account which should not be more than €50 per year. This will provide you with a French bank account that offers Internet banking you can understand and bilingual staff which will mean that you will be able to resolve any issues that come up quickly and easily.

If you would like to open a French bank account via Athena Mortgages you will simply need to send us a few documents by scan and your French bank account can be open within 24 hours. we require:

• Signed French bank account application (copy first and then the original in the post to us)
• Passport copy
• Last two salary slips if you are employed or your last tax return if you are self-employed
• Utility bill less than 3 months old
• Marriage certificate if applicable
• Your reservation contract/title of the property in France – if applicable

If you require help with opening a bank account in France or assistance with the rest of the paperwork arising from your property in France such as tax returns, just give us a call on +44 207 471 4515 or contact us the website contact forms.

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How a 100% French Mortgage works

Got an enquiry today from Steven who wanted to know more about how 100% French mortgages works.

Steven asked, "Please explain how a 100% mortgage would work,could I buy a property with no money down in France with the a strong chance holiday lets could cover the mortgage,is there a catch,and what would be your fees."

Ignoring the obvious element that the loan amount would have to be affordable a 100% French mortgage is catch free. It does what it says on the tin, it's a 100% French home loan that can be used to purchase either an existing second home, buy to let or a French leaseback where the VAT is advanced by the developer. The only properties which are excluded are new build/off plan properties that do not have the 'residence du tourisme classification'. However, whilst 100% of the purchase price of the property is covered, the fees to purchase a property in France are not.

As a rule, it is not possible to buy a property in France without making any contribution at all, though the cash required might only run to a few thousand Euros for some French leaseback properties where the VAT is advanced. In general, for a second home or buy to let which is an existing building, there will be legal fees and taxes which will be approximately 7-8%, including stamp duty and mortgage registration tax. The bank will also charge a fee for setting up the mortgage and our broker fee will be no more the half a percent taking the total contribution to approximately €20,000 for a property worth €250,000.

We work with many developers and French agents offering French leaseback properties that have guaranteed rental income of between 4%-7%, which certainly covers the mortgage payments on an interest only basis and comes close to being self-financing with a repayment mortgage. The personal contribution required for these developments ranges from €11,000 to €20,000 for off plan properties in the region of €250k including deferred interest payments on sums drawn down to meet stage payments. If you were to go it alone and to rent out the property on a permanent or seasonal let you could probably also achieve a similar level of return meaning this would work for you also.

For a personalised simulation of the different loans available the best idea is to first find out how much you can borrow in France so just give one of us a call on +44 207 471 4515.

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French mortgage rates in 2010

Predicting interest rates and French mortgage rates is a game that can win you millions if you work in the city but at the cold hard face of decisions about which French mortgage to take out, looking at trends may save you some money.

The pound strengthened today on the back of the Mervyn King's speech last night in Edinburgh to €1.11 indicating that a rise in UK interest rates is not as a far away as was previously thought. 'I do not know for how long interest rates will remain so low but at some point they will return to more normal levels' King said 'And it would be wise to take this into account in your financial planning.'Indeed, interest rate futures in the States are pointing to a rise in U.S interest rates within a few months and generally what happens in the U.S first, soon comes to the UK and to then to Europe making the outlook for French mortgage rates higher in 2010.

So although the UK and EU each have different issues to contend with, huge budget deficit on the one hand and a currency that was not designed to replace the dollar become the world's haven of strength on the other, it is not hard to see that if the American begins to recover and heat upagain it will not be long before the UK and EU catch the fever. If you are considering investing in a French property soon, take a look at the current French mortgage rates because rates for French mortgage in 2010 may be very different.

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French Mortgage

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FRENCH PROPERTY AND MORTGAGE SUMMARY OCTOBER 2009

French property prices rise by 0.1% during September
Prices now 2.8% higher than six months ago
Number of French mortgage enquiries through Athena up 21% during Q3
French mortgage completions at Athena Mortgages up 14% Q3 on Q2

London, 19 October 2009 – Similar to the UK, the French residential property market is continuing to show signs of stabilisation. While prices* fell by 1% during Q3, they rose by 0.1% during September, resulting in a total positive return for the period April to October 2009 of 2.8%. Returns for the year to date have now pulled back to a respectable -7.8%.

Unlike the UK, however, a history of prudent lending in France (lenders do not allow borrowers’ total outgoings on finance payments to exceed one third of their total gross monthly income) has meant mortgage finance is still readily available.

While mortgage finance in the UK remains extremely difficult to secure, especially at higher LTVs, the French banks continue to lend to borrowers with smaller deposits, even up to 100% LTV. This level of LTV is also available to non-resident borrowers, both for second homes and investment properties.

The 100% mortgage, unthinkable in the UK, is proving highly attractive to investors given the ongoing weakness of Stirling.

Interest in the French property market among UK-based investors is soaring as a result. In Q3 2009, Athena Mortgages saw a 20% rise in mortgage enquiries on Q2, which in turn was up 42% on Q1. Mortgage completions in the third quarter were also up 14% on Q2. Many British property investors are now looking across the channel to add to their portfolios given the difficulty securing (competitive) finance at home.


The buy-to-let sector in France is attracting particular interest from investors at present, as depressed prices are boosting gross yields significantly in many areas. In the Normandy town of Alençon, for example, gross yields are 7.5%, while in the medieval town of Poitiers, western France, they are currently 7%. Nevers in central France boasts the highest gross yields, currently, of 7.6%. Other towns of note include Clermont Ferrand (6.8%) and Tours (6.4%).

A growing number of UK investors are also placing French leaseback properties into SIPPs, something that can be arranged through several French lenders. To this end, Athena Mortgages is currently working closely with French tax specialists, Sykes Anderson, and Liberty SIPP.

For second home buyers, now is an ideal time to buy into some of the most desirable towns and cities of France at significantly discounted prices. For example, prices in the highly sought-after destinations of Biarritz, Cannes, Perpignan and Nice are all approximately 10% lower than a year ago.

There is a degree of correlation between the UK and France, at present, in the sense that both property markets are clearly stabilising. However, while the UK property market remains very difficult for investors to access given ongoing lending constraints, there is now a real appetite to lend among the French lenders, who have suffered much less than their British counterparts. For a growing number of British property investors, France is fast proving the place to be, particularly given the availability of 100% mortgages, which circumvents the punitive exchange rate.

Crucially, there is also significant innovation at the product level. For example, we have recently launched a ‘next generation’ hybrid mortgage product in conjunction with a major French bank. With a typical rate of 3%, the new product enables borrowers to split their mortgage amount into an interest-only portion and a repayment portion, which represents a perfect balance between the potential shortfall of a capital repayment loan and the speculation of the interest-only route.

With extremely competitive borrowing rates, attractive prices and genuine product innovation, there’s a real buzz to the French mortgage market at present.

For the best second-home, leaseback, buy-to-let and equity release mortgage products, visit the Best Mortgages section of the Athena Mortgages website.

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100% French Mortgage best bet for UK buyers until 2014 -Report from Ernst and Young says pound will stay weak for four years.

A 100% French mortgage seems to be the option of sense for the next four years due to the weakness of Stirling for UK buyers of French property. The pound has lost more that a quarter of its value against the Euro in the past 2 years and as the value of Stirling continues to fluctuate, parity with the euro cannot be ruled out. So for those looking to buy French investment property of buy a dream home, what does the future hold for Stirling? According to a report by accountants Ernst and Young, the pound is likely to remain weak as international investors decline to invest in the UK in the face of the UK's growing budget deficit. This lack of investment will keep the economy slow and keep interest rates in the UK at the low rates currently being experienced.

The news is not all bad, though, in UK as a continued period of low interest rates provides an increase in the disposable income for those on variable rate mortgages. The weaker pound also offers succor to the manufacturing and tourism industries which are gradually seeing the benefits. Indeed, due to a peculiarity of the UK gilt markets for government borrowings, the situation for UK in the short to medium term seems good as the maturity for UK governments portfolio of bonds is 14 years compared to half that for other major economies. So, providing the politicians can find a sustainable way to reduce the overall deficit, investors from the UK can operate with confidence knowing that low inflation and interest rates appear to be here to stay in the short term.

The availability of finance in France for French mortgages for all property types means that the Pied a terre in Paris, Maison de charactere in the Dordogne or Chalet chaleureux in the Alps is still at your finger tips fulfil that part of your life's plan. The added benefit of course being that an asset denominated in euros is an extremely useful financial product which can be used judiciously at various stages in the financial cycle to great financial advantage. Those people who bought in France over the last decade have not only seen good capital growth in the property, but also have been able to pay off large chunks of their French mortgage when the pound was strong thus building up the equity in the property. These lucky people are now in a position to release that equity in euros and convert into pounds with an increase in the value of over 25%. These funds can then be used to pay off a UK mortgage in preparation for when the pound will become strong again. Over the course of a few economic cycles, it would be entirely possible to pay drastically reduce the overall cost of both the UK and French mortgages. In this way we can see that owning a property in France wuth a French mortgage, is not only part of dream lifestyle but also a very sensible investment as part of a balanced portfolio.

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Mortgages in France see competiton and innovation

Mortgages in France have not historically been a hot bed of innovation and competition but signs are that the French mortgage market is beginning to catch up with its cousins abroad. Recent reports from French specialists Empruntis reveal that September showed a reduction in the average rates of 0.20% for fixed rates for most durations and a reduction of 0.15% in the rates for variable mortgages indicating strong competition from French banks and French home loan specialists.

For mortgages in France for non-residents, we are seeing innovation with a next generation Hybrid mortgage product with rates typically under 3%. This Hybrid mortgage allows you to split your loan into two parts, one on an interest only basis and one on a capital and interest basis. There is a minimum loan amount of €300,000 and at least €100,000 must be on interest only. A further criteria for the loan is that the borrower must be able to show 150% of the loan amount in net assets made up from net equity, savings, stocks or shares.

The outlook for the French property market as a whole seems positive with the FNAIM, national association of estate agents reporting that the market is stable. In September, prices rose 0.1% and though prices are down over the last quarter, the overall picture is good with a rise of 2.8%. This upsurge in prices is in part responsible for the competition and innovation amongst the banks who are seeking to increase their share of the mortgage market in France. Other aspects that make up the picture are the rises on the stock exchanges, the price of gold and the slowing rise in the growth of unemployment. As has been written elsewhere, these conditions point to an excellent period for buying French property; low interest rates and still uncertainty in the property market mean there are bargains available. Access to finance is good for those that can afford it at up to 100% loan to value meaning there is not even any need to worry about the strength of the Euro. This period looks set to last for a while as Jean Claude Trichet has deemed the current rates of interest appropriate signalling that the current rates should last into 2010. While this period won't last for ever, it seems to be with us for the next 6 months at least before we may see the return of inflation and higher interest rates.

Remember that all mortgages in France require supporting documentation and are subject to an affordability calculation based on tax returns or audited accounts. For a guide to getting mortgages in France there is a handy article I wrote yesterday here. Guide to mortgages in France.

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Guide to getting a French mortgage or How much can I borrow in France?

French mortgages are somewhat different from loans/bonds/mortgages in other countries. For a start, in 95% of cases the amount you will be able to borrow from a French bank will be based on an affordability calculation that will be linked to your provable income, whereas in the UK and US it is possible to have "self cert" mortgages where no proof of income is required. In the Anglo Saxon world, with a certain amount of deposit, the future rental income from a buy to let rental property will be sufficient to obtain mortgage finance without reference to income documentation from employment or accounts. That is not to say that French banks do not consider the future rental income from buy to let or investment property, indeed, some banks will take up to 100% of the future rental income from the property into account when considering the affordability of the French mortgage loan to you.

Lets look at an example, French banks are willing to let you spend a very sustainable 33% of your gross income on servicing all your borrowings. For somebody earning the equivalent of €60,000 per year, this would mean €19,800 per year or €1650 per month. If for example, you have a mortgage of €1,000 per month, this would leave you with €650 per month to spend on a French mortgage. A quick glance at a mortgage calculator will show you that for €650 per month you could have a mortgage of approximately €100k to €200k depending on interest rates, the duration you would like to have the mortgage over and whether the mortgage is on interest only or not. If the property you were looking at had a rental income potential of 4% of its value on an annual lease basis you could realistically obtain a French mortgage of over €400,000, providing the property was valued at that amount.

There is some flexibility in the system and brokers with their personal contacts at banks can sometimes make the correct representations in order to obtain better rates and higher loan amounts. For a free quote to find out how much you could borrow in France, just give us a call on +44 207 471 4515 or visit our website. If you like to see a list of the required documentation for obtaining a french mortgage please click here. An experienced French Mortgage broker such as Athena Mortgages can save you time and money by helping you to select the right French mortgage for your project to suit your circumstances.

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Live longer and be happier with a mortgage in France

It's official, the France is now sitting pretty at the top of the league for the European quality of life index according to a study from U switch published yesterday. The report paints an idyllic picture for those citizens from the UK who can move to France where they will enjoy lower costs for life's essentials such as food and fuel, early retirement, more holiday, more sunshine, better heath care and a longer life by 2 years. Access to the more relaxed lifestyle available in France is accessible to the Brits who have the highest average salaries in Europe and many more are now enquiring about properties and mortgages in France according leading French brokers.

In August and September enquiries for mortgages in France at Athena Mortgages were up, with many enquiries for 100% mortgages. Mortgages in France are available at rates from 2.35% on a variable basis, long term fixed rates starting at 4%. The availability of credit at these rates and at this level of loan-to-value is encouraging buyers who otherwise might be put off by the strength of the euro versus most other currencies. Competition amongst French banks is also increasing, driving down bank margins. Innovation has made a come back to the market place signalled by the recent launch of a next generation hybrid mortgage which allows borrowers to split their loan amount into a portion on interest only and a portion on repayment, subject to a minimum loan of €300k.

Whilst we can't all move lock, stock and barrel across to France to endlessly enjoy the delights of good climate, shorter working hours, better doctors, cheaper petrol and more holiday, we can can perhaps purchase a property in France to sample the lifestyle when we can.

To apply for a mortgage in France, that may increase your chances of living longer and being on the whole happier, you will need to be employed or have 2 years accounts if you are self employed. To find out how much you can borrow in France just give us a call on +44 207 471 4515 and we will let you know what size mortgage you could obtain.

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Buy a French property with a 100% French Mortgage to hedge against inflation

The French mortgage market in France offers a perfect means of buying French property assets as a hedge against the impending prospect of rising inflation in the years to come. With interest rates as low as they have been since the launch of the Euro and the uncertainty in the French property market offering bargains, now is certainly the time to find out how much you can borrow in France and the French mortgages on offer to you.

It does seem as though we are nearing a change after the consumer price indices after the falls in the consumer price indices of the past two years. Gold is at an all time high and is predicted to double again to match the highs of more than $2000 per ounce in the eighties. So with impending rises in interest rates as economies take off, producing higher inflation which eats into the value of un-invested cash the time for buying assets is upon us.

French property assets are one of the most popular in the world owing to the fantastic culture, climate and cuisine. France remains the most visited country in the world with over 80 million visitors per year and Paris the most visited city. The availability of French mortgages to buy property at 100% loan to value at low rates is unique in the current financial climate and based on the prudent lending practices of the French banks.

To find about buying property in France or how much you can borrow and the required documentation you will require to obtain a French mortgage, please visit http://www.athenamortgages.com/

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