There is no doubt that the property market in France remains fairly stable with prices having stayed the same or even decreasing in some regions over the past year or so. Financing your French property purchase deserves careful planning and in many instances it is well worth considering applying for a French mortgage.
Before you move ahead with a purchase, it’s a good idea to consider all your options regarding your financial circumstances. This puts you in a great situation to strike while the iron is hot when you find your dream property.
It may be beneficial to use a French mortgage broker, who will do all the legwork for you with various lenders.
You will soon find that French mortgages are worked out differently from those in the UK; mainly in that the criteria they use to work out what they can offer you differs. It’s important to note that if you are turned down by one bank, you may well not be by another. It may be beneficial to use a French mortgage broker, who will do all the legwork for you with various lenders.
If you are going to be carrying out any renovation works on your property you will need to employ the services of a French registered builder as French lenders will not consider lending if you are doing the work yourself. This will also stand you in good stead should the time come when you wish to sell your French property, as you can offset any invoices against Capital Gains Tax.
Maximum loan to value in France is 80% and there are some fantastically low interest rates available – currently starting from as low as 2.30%. We have some friends here who took out a mortgage at this rate over 10 years, even though they were able to fund their purchase without taking one out. It just made more financial sense to have the mortgage in place and keep their savings intact!
Before you start your mortgage research, do make sure your financial affairs are up to date.
Before you start your mortgage research, do make sure your financial affairs are up to date. Long term overdrafts are less common in France and any lender will want to see that you have not exceeded any agreed overdraft limit. Following on from this, it is important not to stretch yourself and lenders will want to ensure that you still have some savings left over after your mortgage and other financial commitments are paid off.
The timescale may be quite lengthy in France so it is always a good idea to get this part of your proposed purchase dealt with at the start. It normally takes three months from starting your French mortgage application to actually having the funds available by the time the Acte de Vente is ready for signature with the notaire.
We can help you with all of this and will be delighted to put you in touch with our recommended mortgage broker so do not hesitate to ask us!