Interested in buying with a
mortgage?
Buying French
property with a
mortgage can be a good idea, but getting the right advice can be a
problem.
Contact us at French Property Links. We can supply specialist advice
and arrange French
mortgages for UK and non-UK clients.
Note: French
Euro mortgages are outside most financial advisers' normal
experience and expertise.
French Property Links cannot give, nor can accept, any warranty for
any advice or services provided by third party firms or advisers.
Click
here to read customer comments about our mortgage service.
Services we can
offer:
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further information:
A Quick Guide to French Property Mortgages
| Maximum Percentage
Mortgage ?
Note - based on net property price excluding
the Legal fees / Notaire fees. |
UK Nationals -
living anywhere outside of France to 80%
maximum for mortgage cases below EURO 75,000, otherwise to 85%
maximum for cases EURO 75,000 and above. For clients already resident or
working in France, higher percentages may be possible (up to
95%-100%).
Other EU Nationals
- to 80% maximum for 2nd
homes/holiday homes or up to 95% for a main residence.
Other Worldwide Nationals
- normally to 80% maximum, if
resident and working outside of France.
|
| Mortgage
Currency Denomination ? |
Euros only. |
| Minimum
Loan Amounts ? |
€ 50,000 euros minimum. |
| Term
of Mortgage ? |
Minimum of 5 years &
Maximum of 25 years. Not normally
beyond retirement age although sometimes possible up to 70 years with
good pension and/or investment income.
25 year term available provided this does not take the client
beyond 70 years of age. |
| Mortgage
Repayment Methods ? |
Normally Repayment
("Capital & Interest") Mortgages.
Part repayment / Part interest only schemes available up to 80% in Paris
and the Cote D'Azur or 70% elsewhere. Mortgage terms of between 15 - 20
years only.
For cases over 200,000 Euros - "Interest only" available up to 80% where the applicant can demonstrate net
assets of 120% of the loan amount - i.e. all assets in EU (which can be property, shares, savings etc.
less any borrowings on them).
Terms of 10-20 years.
Below 200,000 Euros interest only available up to 70%. Maximum term of
20 years. |
| Life
Assurance (Life Cover) ? |
Mandatory
Life cover for the full amount of the loan (plus an allowance for
exchange rate movements/term alteration on a non Euro policy) is
required as a condition of any mortgage. |
| Type of
Security Required ? |
First charge over
the French Property with the
assignment of suitable Life Assurance. |
| Lending Areas
? |
Mainland France
only. |
| Lenders'
Own Arrangement Fee ? |
Generally 1% of the mortgage
amount (Note - subject to each
lenders minimum and maximum levels - which could be >1% or <1%,
depending on amount actually borrowed). Not payable until offer
accepted. |
| Interest
Rate Options ? |
Variable, Fixed and Capped
rates available Please
note that on variable rates mortgages, the usual convention in France is
not to alter the Euro monthly mortgage payment but
to reflect changes in interest rates by altering (i.e. extending or
shortening) the mortgage term itself |
|
