Money News
Nearly a third of all Brits buying property in France are choosing French mortgage providers, according to Crédit Foncier de France, France's number one mortgage provider. And whilst French mortgages are typically cheaper than in the UK, foreign exchange specialists HiFX warn that these property investors could be exposing themselves to excessive bank charges and unnecessary currency risk, negating the benefits of money saved on the rates they're negotiating.
Mark Bodega, director at HiFX says that whilst more and more Brits are attracted to the cheaper rates offered by French Euro mortgages most people completely forget to take into account the transfer charges levied by their bank and the currency risk associated with transferring money abroad.
"To make the most of good French mortgage deals Brits need to consider how they are going to transfer money abroad to meet the repayments," says Bodega.
According to Crédit Foncier, the value of cross border mortgages in the French property industry is increasing by approximately 50% a year. It hit 6 billion euros in 2006. Overseas buyers now make up over 6% of the French property market and almost half of these are British or Irish.
Typically, the savings to be made when using a foreign currency specialist, as opposed to doing your loan through a UK bank, will include a more competitive exchange rate, no commission charges, no transfer fees and no receiving fees. As ever, however, the message is to shop around and do your research first.
30 January 2007 © Moneyextra.com
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