French mortgages scarce for self employed
The credit crisis continues to blight many economies around the globe and will, it appears, continue to do so for some time yet. French mortgage lenders are the latest in a long line of financial institutions to tighten lending conditions in the home loan sector.
A slowing of the French economy has influenced a change of attitude towards applicants for real estate finance. One sector facing stringent restrictions are the many self employed residents hoping to take the first step on the French property ladder.
During the last two years of financial crisis the self employed have seen a drop in gross profits as people cut costs to guarantee continued employment and as income is reduced so the risk factor is increased and sme lenders are refusing to finance at this level.
In contrast as sterling gains in strength against the Euro the French property market is seeing a rise in UK property buyers crossing the channel to make a purchase.