French Property Mortgages and Leasebacks in France

French mortgages and leaseback advice including decisions in principle

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.  

A Quick Guide to French Property Mortgages

Maximum Percentage Mortgage?

Note - based on net property price excluding the Legal fees and/or Notaire fees.

UK Nationals -
living anywhere outside of France to 80%
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?

75,000 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

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