French lenders increase LTVs for UK and Irish nationals

French lenders are now offering higher LTV mortgages to UK and Irish residents, research from Assetz Finance reveals.

The maximum LTV ratio typically offered by French lenders until now has been between 80%-85%.

Research by Assetz Finance has revealed that lenders will now offer up to 90% LTV to UK and Irish buyers on holiday homes, seasonal rental and leaseback properties in France, requiring investors to put in a deposit of just 10%.

It says this increased lending will provide a significant incentive for UK and Irish investors looking to purchase in France, with lower deposits resulting in higher gearing and magnifying real returns on cash invested.

Katy Hepworth, overseas mortgage manager at Assetz Finance, says: “This is a long awaited improvement in French borrowing, and with rates currently starting at 4.45% and mortgage terms of up to 30 years available, these 90% LTV mortgages are extremely affordable”.

“The breakthrough in finance available through French lenders has positive implications for capital growth in the French property market as a whole.

“With lower deposits now making the market more accessible than ever, we expect to see an increased demand for French property from UK and Irish buyers, which is likely to help boost property values further in key areas.”