Just because you don’t live in France doesn’t mean you can’t have a French mortgage – rates are fairly low and the process is simple. And the houses, well they’re simply divine! It even makes sense if you could pay in cash.
Mortgage lenders in France have been increasingly willing to loan to buyers that don’t possess French residency. There are plenty of lenders who offer a bilingual service and interest rates compare very favourably with UK mortgages.
If you are buying a home in France and wondering how you will pay for it, a French mortgage could be a serious consideration, rather than re-mortgaging your home in the UK. Most French banks offer loans to foreign buyers but you may also want to consider employing the services of a mortgage broker, who can search the market for the best deal with your personal circumstances in mind.
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Before you sign anything for your property purchase in France you need to seek pre-approval. The process isn’t necessarily fast, but it is efficient, and you can speed up process. For example, it’s a good idea to open a French bank account as soon as possible. Having this in place is likely to make things move much faster.
We have friends that bought a house near us recently, who opted for a French mortgage even though they could have paid cash. They managed to obtain such a low rate of interest that it made more sense for them to do this and leave their cash in a high interest account.
We have friends who opted for a French mortgage even though they could have paid cash. They managed to obtain such a low rate of interest.
Generally speaking mortgages are available at 80% loan-to-value, depending on an individual’s circumstances. There are both fixed and variable mortgages available too, but always check any redemption penalties as these may be greater on a variable mortgage.
French lenders are obliged to give you the annual percentage rate of your mortgage, enabling you to compare offers. Buildings insurance is required, too, as it is in the UK.
As a general rule mortgages are well protected and regulated in France so if at any time you are not happy with the service provided to you by your lender, you will be able to have some recourse through a mortgage protection body.
Although taking out a French mortgage may seem strange at first, taking a look at what is available through a broker is something that will be well worth your while. We can supply you with our recommended broker. Happy house hunting!