openPR Logo
Press release

France 'survives credit crunch'

02-28-2008 06:13 PM CET | Industry, Real Estate & Construction

Press release from: Assetz

Since the term credit crunch entered the lexicon at some point last year, the mortgage market has become tougher in the UK, with this week's withdrawal of 125 per cent mortgage products being the latest reduction in the availability of products with which to buy property in Britain.

In France, however, it appears the opposite has occurred. In recent years the country, whose president Nicolas Sarkozy pledged to create a nation of homeowners, has seen a major boom. More significantly, this is continuing, thanks to a series of ever more competitive mortgages, financial services firm Blevin Franks has stated.

Matthew Weston, the overseas French mortgages manager at the firm, said: "So far this year the subprime crisis has had little to no impact on the non-resident France property investment market in France."

Part of this, he suggested, was the way the market in France had reacted to the situation:
"In the wake of the credit crunch, French banker's trepidation that this boom may be over may explain why so many lenders this year are offering new or enhanced products and cut-cost discounts than ever before."

As a result, he said, loan-to-value ranges had increased rather than shrinking, the length of loans had become greater and set-up fees had fallen. The result of this, he noted was an increase in mortgage lending in the last three months of 2007, which was 3.8 per cent up on the equivalent period in 2006.

There may be many reasons behind this very different reaction to events in France. One may be the fact that, as Mr Weston pointed out, the French banks did not suffer comparable losses on subprime securitised bonds. Another might be that there has not been a Northern Rock-style calamity, with the one French financial institution to get into trouble recently doing so not because of the credit crunch so much as the rogue actions of one employee performing his best Nick Leeson impression.

Whatever the reasons for the situation, UK buy-to-let investors may wish to make the most of this situation and pick up cheaper deals for property in a popular country for British ex-pats and holidaymakers.

There are other costs which buyers should be aware of, however. In a Daily Telegraph report on buying property in France, the manager of Savills Private Finance International, Miranda John, said both agents and sellers could charge additional fees to buyers. She stated: "This fee can be added to your mortgage, but can be up to five per cent of the sale price of the property - so make sure you check the agent's fees before putting in an offer and calculating your budget."

Many, however, might consider any additions to fees to be a fair trade-off in comparison with the difference a mortgage might cost in France compared to the UK at present. As long as the French are able to keep the credit crunch at arm's length, the market for French property may remain attractive.

In today's world Property investment is an excellent investment option especially investment in UK

Address:Assetz House, Newby Road, Stockport,Cheshire

zip:SK7 5DA

ph:0845 400 7000

fax:0845 400 6010

email:linkexchangeseo@gmail.com

Since the term credit crunch entered the lexicon at some point last year, the mortgage market has become tougher in the UK, with this week's withdrawal of 125 per cent mortgage products being the latest reduction in the availability of products with which to buy property in Britain.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release France 'survives credit crunch' here

News-ID: 38625 • Views: 892

More Releases from Assetz

Searching for new Spanish options
For every analyst who says the Spanish property market is dead, another states that it is only slumbering. Some have suggested that the market is a busted flush for investors, with falling prices and over development meaning the good times are over after the recent boom years. Others have noted that Spain remains a popular place with buyers, many of whom are as much if not more interested in enjoying a
Portugal's lessons in development
In the recent turmoil of the credit crisis the difficulties of Spain have been well documented, with falling prices, controversy over illegal building coming to a head when some properties were summarily demolished and a general feeling that a few chickens had come home to roost. While such a view may underestimate the variety of possible new opportunities that Spain can offer now or in the future, which may arise from
How transport gets investors on track
Today\'s news that the Bank of England\'s monetary policy committee has cut the base rate again to five per cent will be welcome news for investors in property amid a climate that has seen the market take something of a hit in recent months, both from the higher interest rates brought about by the increases in the rate between August 2006 and July last year, plus, more recently, the credit
Best deals opening up in Cyprus
Cyprus has been having an eventful year so far, with New Year\'s Day bringing the adoption of the euro as its official currency, the election of a new president, Dimitris Christofias and with him the tantalising prospect of better relations with northern Cyprus, perhaps even leading to a permanent solution to the division of the island into Greek and Turkish segments that has remained intractably in place since 1974. Since Mr

All 5 Releases


More Releases for France

Cigarettes in France, 2016
ReportsWorldwide has announced the addition of a new report title Cigarettes in France, 2016 to its growing collection of premium market research reports. "Cigarettes in France, 2016" is an analytical report by GlobalData that provides extensive and highly detailed current and future market trends in the French market. The report offers Market size and structure of the overall and per capita consumption based upon a unique combination of industry research, fieldwork,
Packaged Food in France
Summary The slow but progressive exit from the persisting crisis of the French economy and the slight improvement in GDP growth in 2016 has contributed to current value growth of 1% in current value terms in packaged food. This is still modest and just in line with the CAGR seen over the review period, although this is in the context of strong price wars, stagflation and the detrimental effects of terrorist
Biomethane for France
WELTEC Receives Order for Biogas Project with Gas Processing French agriculture has a wealth of raw and waste materials that are suitable for biogas plants. However, only half of the available materials are presently used for energy production. Thus, ambitious development plans have been drawn up: By 2020, the biomass share in the field of renewable energies in France is to rise to about 50 percent. No wonder that that the number
celumday 2012 France
On October 4th 2012 the celumday France will take place at the Hippodrome d’Auteuil in Paris. The Tribune Présidentielle is the perfect meeting environment for customers, partners and interested parties to exchange ideas and discuss current developments as well as trends in managing brands and digital assets. At the celumday 2012 France you will experience that sportive competition and today’s business world have a lot in common: both strive to be
04-04-2008 | Sports
Speed:World:Cup
Speed:World:Cup France: Day 3
What an incredible day: 60 knots of wind, amazing speeds, upside-down timing caravan. We have rarely seen such a windy race day during competition - an experience that not many can share. Alexandre Caizergues and Charlotte Consorti, both from France, are still dominating the PKRA Speed:World:Cup in Port St. Louis. The day started calm, not very windy, and the skippersmeeting was scheduled for 9:30, due to the official function yesterday evening.
04-03-2008 | Sports
Speed:World:Cup
Speed:World:Cup France: Day 2
Epic conditions today in Port St. Louis, with three legs held in 30-40 knots of wind the race committee tested all skills of the riders, technical as well as physical. Alex Caizergues was the man of the day, with three bullets clearly in the lead now. In the womens fleet, Charlotte Consorti has also a perfect score with 4 out of 5 victories. Skippersmeeting was held at 9:00 and