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Finance

Financing your French property

Here you will find a wealth of information covering how to invest in the French property market, how to obtain a mortgage, how to transfer money and how to open a French bank account.

 

French Mortgages

It is easy to obtain a mortgage to purchase your property in France. If you are buying a home in France, there are three ways to raise the mortgage: against an existing UK property (provided that there is sufficient equity), against the French property, or a combination of the two.

Initially, there are certain things a potential buyer needs to know.

When you sign the reservation contract at the sales office, you must already have decided whether or not you are going to take out a mortgage because you will be asked to write this in French on the “compromis de vente” by the agent.

If you are taking a mortgage out, you must have it arranged and agreed before you sign your “Acte de Vente” (Deed of Sale) at the Notary’s, usually two to three months after you have signed your reservation contract (“compromis de vente”).

Mortgage through a French bank

There are certain things to take into consideration when borrowing money in another currency. With the right advice, however, even the most inexperienced borrower can successfully buy their dream home.


French banks
are willing to lend money at very attractive rates and terms. As a non-resident you can currently obtain a 15 year mortgage for 80% of the property value with a 2.60% variable interest rate (French residents can borrow up to 100% of the property value, European residents up to 80%, and non-EU residents up to 60-65%).

French mortgages are not based on the UK model of multiple incomes. Typically the calculation works on the principle that the total of the French mortgage payment, plus any UK mortgage or rent, plus any other long-term borrowings, should not exceed a third of the buyer’s gross monthly income.

The actual process of applying for mortgages in France is, again, not,difficult, and usually takes at most 6 to 8 weeks. It is, however, possible to complete the process even quicker.

In summary, obtaining a mortgage for a French property is fairly straightforward, and is even more so with our help.

Re-mortgaging in France

It is common to re-mortgage in the UK to raise money for a variety of purposes. This is not so common with French lenders, although some are starting to offer mortgages on this basis, allowing the borrower to take advantage of rising values and equity. However, generally speaking, if you think you will need additional funds later, it is better to raise these at the time of purchase, when it may be easier to obtain the finance.