The product is offered at a rate of 4% and is available for second homes, buy-to-let and leaseback properties.
John Busby, director of Athena, said the broker added the 100% LTV deal to its range as there had been a substantial increase in the number of clients turning to the property market in France.
He said: “With UK house prices expected to decline further, many people are now looking
abroad, as they see the overseas market as a better investment opportunity. While LTVs remain restricted in the UK, this is not the case in France, and the property market is relatively easy to access.”
Matthew Weston, consultant at Weston International Mortgage Consultants, said the French mortgage market was stable as it was underpinned by prudent lending and strict underwriting.
He said: “France is attractive to potential buyers as it was one of the first EU countries to exit recession and interest is containing to grow. Offering a 100% LTV in France makes sense, but I would not expect a huge take-up of the product as there are strict criteria on eligibility for the mortgages.”
However, Sean Adams, international manager at Savills Private Finance, said he was not confident about the idea of 100% LTV mortgages in the French market.
He said: “We feel more comfortable when the client is making some commitment to the purchase because in the past 18 months, people have got themselves into so much debt. I would not criticise a broker for offering this product, but if the housing market turns again, it could be a risky move.”
