Mortgages in France
France offers a wide variety of financial products for overseas buyers recent trends indicate that many UK buyers now opt to finance their French property purchase by using local lenders. The combimation of UK higher interest rates and the complications of paying a mortgage in Euros whilst earning in GBP sterling is a factor in deciding which way to finance your purchase.
Property in France and French mortgages do not have to be complicated
Currency brokers can save you money
Currency brokers can book good exchange rates for long periods in advance therefore protecting the French home buyer from the uncertainty of the currency markets. Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the sterling amount that you will have to pay .There are various organisations that can convert your sterling into whichever currency you need. Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service. Foreign exchange companies like Moneycorp often offer a proactive service to their clients, using their expertise to monitor exchange rates on the clients' behalf in order to achieve the best possible rate of exchange.
Learn more Transferring money to France
Buying property in France
A wonderful quality of life, efficient transport links and some of the most spectacular scenery in Europe – just three of the reasons why France continues to be one of the most popular destinations for Britain’s growing army of overseas property buyers. Britons accounted for almost 50 per cent of all sales of French property to foreigners in 2004, and with at least 51,000 Britons currently owning property in the country, this is a cross-channel love affair that shows no sign of ending.
Lending is based on affordability and does NOT allow for rental income from the property. The information required by the bank aims at defining your actual income and thus your ability to repay the mortgage. Loans are granted as long as the payments do not increase your debts unreasonably. As a rule expenditure should not exceed one third of your gross income.
Types of French Mortgages
Repayment & Interest only
Minimum loan amount – €32,000 No Maximum, but must not exceed 85% of valuation or purchase price (whichever is the lower)
Proof of Income: Required in all cases. Mortgages need to be supported by a minimum requirement of proof of income, i.e. if employed – copies of your last six month’s payslips & copies of your latest two P60’s together with copies of your last 6 month’s Personal Bank Statements. Alternatively if you are self-employed – copies of your last three years Audited Accounts & copies of both your last 12 month’s Business and last 6 month’s Personal Bank Statements will be required on application. Non-Status loans are currently not available.
Term: 5-25 years up to age 70
Currency: Euros only
Current Variable Interest Rate: from approx 3.5%
Example for French Mortgage: Repayment mortgage of approx€ 100,000 over a period of 25 years at an interest rate of approx. 3.5% = approx €500 capital and interest per month = a total approximate amount payable over the term of €150,000 excluding other fees.
French mortgage quote
Mortgages in France
Max 85% LTV
Term 5-25 years
Minimum loan €32,000
Repayment & Interest Only
Max age 70
Rates from approx 3.50%
Before you enter into any property purchase you should consider the following things:-
Appoint a good lawyer who can carry you through the process till completion
Only buy what you can afford. Do not overlook Foreign Currency Fluctuations and all closing costs.
Make sure you have a good Idea of what mortgage you will be able to secure prior to entering into any contract to buy
Remember that when taking out an overseas mortgage you will have to declare full details and your assessment will be made on the affordability to pay and not income alone
French property resources
The official Tourist Office web site for France- www.franceguide.com
Every day life in France in English-www.angloinfo.com
France Guide.com, the Tourist Office WebSite for Tourism in France
The official site of the French Government Tourist Office.
CIA - The World Factbook -- France
Features a map and brief descriptions of geography, economy, government, and people.
Welcome to Air France
Welcome to Air France travel planning site purchase airline tickets check ticket
prices and flight availability
France - Wikipedia, the free encyclopedia
The French Republic or France (French: République française or France, ...
In recent decades,
French Tourist Office for France tourism, travel & tours; Paris ...
Information on traveling to, and touring, France, the French West Indies, Tahiti,
Martinique, Club France,
FRANCE Magazine - The next best thing to being there
FRANCE Magazine - The next best thing to being there.