French mortgages vs UK Mortgages

Investors planning on buying French property are being advised take time to consider whether to get an overseas mortgage from a UK bank or a mortgage from a French bank.

According to the Association of International Property Professionals (AIPP), it is vital that people planning to purchase property abroad pick the right mortgage carefully and there are "pluses and minuses" to both.

Some people claim that getting a mortgage in France is advantageous as all the finances will be dealt with in the same currency. But Paul Owen, AIPP's chief executive, told Hotproperty website that there is more to it than this.

UK mortgages 'may have advantage'

According to Mr Owen, it is sometimes a better idea to get a UK overseas mortgage as many European banks do not offer such a wide range of products and these are usually set at a higher percentage value.

He said: "There are pluses and minuses on either side some would argue that it's a good idea to have the assets of the property and the debt in the same currency.

"Although the possible downside of that is that if you're earning money in UK sterling and paying a mortgage in euros, then you run the danger of exchange rates change making a difference to your payments."

Research into foreign mortgages 'key'

He added that the key to getting a mortgage to suit your needs it to do plenty of research before making that big purchase.

The AIPP was set up to regulate the international property industry and aims to help buyers when it comes to investing in land or homes abroad.

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