I own a property in France and I wanted to share my experience of French mortgages and the French property buying process. As well as this page about French mortgages , use the menus on the left to find links to 1000's of properties and services through a wide range of agents throughout France. Explore the different useful links on every page! |
Use the menus below for links to estate agents and useful information : House
to rent in the Loire Guide
to buying in France Town
or country? French
property market Cheap property for sale in France Viewing
Properties Our unique checklists: House
to rent in the Loire
|
French
mortgages are secured on your home in France. The best way to see if
you may qualify is to visit as many lenders sites as possible,
and see if any can accomodate your needs regarding French mortgages. If you cannot meet the
strict French mortgages criteria, Most French
mortgages will be for a maximum of 70 % of the value of your
property, though some will let you borrow more. A higher percentage
is available on French mortgages if you will be living in France. Often,
the rate on French mortgages will be lower if you pay a larger deposit.
With French
mortgages the notaires fees will be 1 - 1.5% higher than
usual at 8-11%, and the lender will charge an arrangement fee
of .5% to 1%. Life assurance cover will be required. TOP TIP French
mortgages take
between six weeks and three months to complete. To save time it is worth
starting to assemble the documents you require well in advance of sending
off your application as some of them - accountants' letters, for example
can take time to obtain. You will
also need a French bank account to pay the French mortgages but
you will need one anyway if you have a French property. It also
takes a certain time to open a French bank account, and we would
suggest that you start working on this at an early stage too. HOW MUCH
CAN YOU BORROW WITH FRENCH MORTGAGES? Affordability
for French mortgages is based on around 1/3 of the amount before
tax you earn each month [your Gross income]. The sources of income
include you salary or profit from self-employment , Pensions,
and rental income or investment income. They will
then calculate the amount you are paying out each month for all your
existing outgoings: UK mortgage, car loan, any other personal loans
plus maintainance payments and the cost of your proposed French mortgage.
They do
not include normal day to day living expenses - such as food bills,
Utility bills and Council Tax. French mortgages
can be anywhere between 5 and 20 years in duration, but cannot
usually continue beyond your 70th birthday. French mortgages
cost more to set up than a remortgage in the UK. Bank fees and mortgage
registration tax mean that upfront costs on French mortgages will be
1.7 - 2.5% of the amount you borrow. However,
French mortgages have a lower interest rate than English mortgages,
so the higher upfront costs can soon be more than covered by lower
annual costs, especially with larger French mortgages. If you cannot meet the strict French mortgages
criteria, Typical
documents you will require when applying for French mortgages are:
3
months bank statements 3
months salary slips P60 3
years accounts if you are self employed, or a director of a company 3
years self assessment tax returns Passport-photocopy
of photo and personal details birth
certificate marriage
certificate (or decree if divorced) credit
card statements mortgage
statement proof
of your deposit If
you hunt these documents down in the early stages of your search
Even
if you are applying for French mortgages a remortgage is one
way to raise the deposit or to pay for renovations.
BUY
TO LET You
may be planning to rent out your property. Buy to let French mortgages are
only available if you are letting on long term contracts- meaning someone
is living in the house long term- so you can't use it yourself.
The
projected rental income also has to cover at least 130% of the French
mortgage payments. If you cannot meet the strict
French mortgages criteria, |
|
Cottage to rent in the Loire ....[this is my cottage- click to see more!]
