Getting A French Mortgage

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On what will they lend ?

You can obtain a mortgage on an existing building, against the construction of a new building, or for or including costs of renovation.or to refinance.

The lender will often but not always carry out a valuation of the property, which is checking that the price is justified, not a detailed or structural survey

How much will they give you

Two years ago 60% or at top 70% of the purchase price were the maximum mortgage loans a non resident could find in France, but nowadays aggressive competition between the British and the French lenders has led to mortgages of 80% and sometimes more. The other limit is your monthly disposable income and hence the size of repayments you can afford, try doing the following calculation, or just fill in the form below and ask us,

Take 33% of your gross monthly income
Deduct any current loan, mortgage or rent payments
The result is the maximum size of monthly repayment you can afford on your French mortgage..

For every 100 Euros of monthly repayment you can borrow about 16000 Euros, depending on the duration of the loan.

Mortgages are given on the purchase price not including the legal fees.

How much will it cost you

You can get mortgages ranging up to 20 years, genuine fixed rate, capped rates, floating rates etc, at the moment rates are historically low so a capped or fixed rate is an attractive option, however some of the fixed rates have high early pay back penalties, so it is worth spending some time deciding which form of mortgage best suits your needs.

There is usually a one off, 1% of the total loan, 'frais de dossier' charge.

What you need to show :- Civil Status

Passport, marriage certificates if married, final decrees if divorced whether now married or not.

And proofs of your credit worthiness

If you are employed this will take the form of your last three months of payslips and bank statements, often the last annual tax return/certificate, sometimes a statement showing the balances on any existing mortgages or loans.

If you are self-employed, your last three years' audited accounts, tax returns/certificates and otherwise the same as above.

Any other revenues like rental income or investment returns can be included, so remember copies of leases, proofs of payments......

You will need to show proof that you have the balance of the purchase price. Usually your bank statements will show this.

Still there........

Medical examinations are sometimes demanded, but make sure you know your height and weight as these are always on the forms.......

A French bank account to make the monthly payments, a copy of the compromis to show them what you want it for.

They will set up an assurance policy for you so that if you die the mortgage is paid off.

When do you apply

There will be a suspensive clause in your compromis de vente (unless you expressly state that you do not need a mortgage) usually naming a lender, a rate of interest and a maximum size of loan - that is your protection, no mortgage, no sale

For the seller the clause will stipulate a given delay by which you have to prove you have applied for a mortgage, and a second delay by which you have to have received your offer or a refusal.

You are not, as a buyer, tied to the named lender, size of loan or rate.

Remember

If you have a fixed income coming from a non Euro country, by taking a Euro mortgage you are taking a view on currency futures.

While there are many differences between the mortgage offers made by all the lenders in the French market, there will be one deal that is better suited to your needs than any other, our London based broker has established good relationships with all the reputed lenders in the French mortgage market.

If you would like more information or a mortgage asessment fill in the contact form below and our anglophone French mortgage broker will get back to you.
Here are some of  the best current mortgage deals on French leaseback schemes

 

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