You can now get a Euro mortgage for French residential property with a variable rate of 1.95% and with an 80% LTV from the overseas mortgage specialists, Conti.

France according to Conti currently has a very stable property market, in the main due to a more prudent outlook from its financial institutions.

Clare Nessling, operations director at Conti, said: “According to our records, this is the lowest rate we’ve offered for property in France. The country has become an increasingly attractive investment option, not least because of very low interest rates and easy access from the UK, but also due to the falling value of the euro and lower property prices, with many sellers dropping their prices to levels we’ve not seen for several years.”

The company states that by talking out a Euro mortgage, investors could potentially save significant sums of money if sterling appreciates further against the euro, which it expects to continue to do so, and this will then reduce the sterling cost of the property purchase.

The following example from Conti indicates that if an investor had taken out a euro mortgage of €250,000 in February 2010 for a property in France, based on the exchange rate at that time of around €1.1 per £1, they’d have been required to make a commitment of around £227,000 to pay that mortgage off.

The exchange rate has since improved to around €1.2 per £1, so it would now cost £209,000 to redeem the mortgage - a reduction of £18,000, or 8%, in the sterling cost of the property in just four months.

If, over the next year or two, the exchange rate increases to €1.3, investors would only have to find around £192,000 to repay the mortgage. So the cost of the property would then reduce by £35,000 in sterling terms.