Below , you wil find the most frequent asked question, if you do not find the answer withing this list, click here, we will be happy to bring you the information you need.

Questions about mortgages for French property.

Q. How much will I be able to borrow ?
70-100 % of total price.

Most lenders in France will let you borrow 70 % of the value of your property, and some will let you borrow more. For some borrowers, however, we can achieve 80 - 90 % LTV.

But first a note about how French house prices are quoted:

French house prices normally include agents' fees. They are quoted like this:  €99,000, FAI - meaning ' Frais d' Agence Inclus'.
So, the buyer in France usually (but not always) pays the agents fee.
The price of the property, excluding the agents' fee is called the ' net vendeur ' price.
In addition, the buyer has to pay the notaires fees.
These can be as much as 10% of the value of a low priced property but are normally around 7% of 'net vendeur'' price.
The fees consist of stamp duty on the purchase of 5 - 6%, plus the notaires fee of around 1% to carry out the conveyance.
Finally if you are borrowing in France to buy the house, the notaires fees are increased by a further 1 - 1.5% to pay the 'frais de garantie' - mortgage registration tax, making the total notaires fees 8%.
In these pages we refer to the house price including agents fees and notaires fees as the total price.


Q. Will my income be sufficient ? / Are self-employed people accepted?

In order to assess whether you can afford the mortgage you want, most French lenders will take 1/3 of the gross amount you receive each month from all sources, including salary or profit from self-employment plus investment income. They will then deduct the amount you are paying out each month for all your existing loans (UK mortgage, car loan, any other personal loans) plus alimony and rent if paid and of course the cost of your proposed French mortgage. Formal proof of all income sources is required. Self-employed people will have to provide a minimum two years accounts.

Rental income is treated differently; the monthly cost of the mortgage you have taken to fund the property is deducted directly from the rent, or potential rent, that you earn from the property, before they look to your 1/3 of income for support.  Thus, if you are borrowing on a property that is to be let, you can afford a larger loan.

If you borrow for a longer period your monthly payments will be less and you can therefore afford to borrow more. Loans can be anywhere between 5 and 30 years in duration, but most borrowers are reluctant to agree durations which go beyond the borrower's 70th birthday, although using independent French life assurance cover we can obtain cover up to age 89.

Q. What will the interest rate be?

1 - 2 % p.a. below comparable UK rates.

The interest rate will depend on whether you take a fixed rate or a variable rate mortgage. Fixed rates (i.e. fixed throughout the life of the loan) are the norm for French borrowers, but variable rates are freely available and widely used by British borrowers in France because they are used to them.

In a normal world variable rates should be lower than fixed rates, although as their name implies they can go up or down in line with rates in the market. With a fixed rate mortgage you will pay the same rate throughout the life of the loan although you can usually switch to a different rate basis if you wish, subject to the payment of a penalty, capped in France at 3 % of the amount switched.

Q. Can I get finance for building works and alterations?
Yes.

Most lenders will cater for this and the amount they will finance varies between 70 and 80% at the time of acquisition. If you are applying for a loan just to finance renovation works and you have no mortgage on your property, you may be able to get 100% finance.

You will need to get an estimate from a French-registered builder (a "devis") covering the works to be carried out, and this will form the basis of the amount that can be borrowed. The lender will collect your contribution from you up-front and will then pay 100% of the builder's invoices direct to him, provided they have been signed and accepted by you.

Q. Are buy-to-let mortgages available in France?
Yes.

Provided that you state that you intend to let the property permanently (i.e. on a standard 3 year rental agreement) you can obtain a buy-to-let mortgage, and the projected income from this will be taken into account by the lender in assessing your solvency. Holiday rentals will not be accepted for this purpose. However, one of our panel is prepared to take seasonal rentals into account as income, provided they are supported by a local agent's valuation.
Please contact us for details.

Q. What other terms should I be aware of ?

Life assurance cover will always be required, but it's usually provided at the same time as the mortgage at standard rates. If you are borrowing less than 60% we can arrange some loans without life assurance.