French property market 'very calm'

The French property market is "very calm" and not subject to the sort of credit crunch problems seen in the UK, it has been stated.

In an article for mortgage-solutions online on obtaining home loans abroad, Micheal Axelrod, an overseas mortgage expert with Conti Finance stated: "French banks are immensely careful about whom they lend to."

He added: "To limit risks, most of them spread their investments much more widely than those in the US or UK."

The article added that for this reason they will still be willing to lend 100 per cent loan-to-value (LTV) mortgages to those considered a reasonable risk, with 80 per cent LTV deals being "pretty normal".

It went on to suggest that now could be a good time to invest with overseas interest rates being low.

As part of the eurozone, France has seen its interest costs plummet as the European Central Bank has trimmed its main refinancing rate from 3.75 per cent last October to one per cent now.

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