Guide to French Mortgages
Apply for a French Mortgage
Our specialist overseas finance partners strive to offer the most complete selection of mortgage products available throughout France and Europe for non-French, foreigners and international buyers, including for non-EU residents who want to buy property in France. They specialise in sourcing mortgage and re-mortgaging packages and commercial loans for our clients and could consider loans for larger homes, depending on the LTV, condition, the price and the project. We believe that only when your specific situation has been discussed can you receive the most valuable advice from our financial experts.
Whether it’s help with raising finances or advice on minimising your exposure to tax, they provide bespoke packages to enable buyers to secure their dream home or property investment in France. If you need legal and taxation assistance our tax and law partners can assist you with every aspect of buying, working and/or living in France; please contact us for more details.
Application Assessment
French banks and lenders must assess if you can afford to take out a mortgage. This is due to French consumer law and is done by comparing your outgoings (mortgages, car and other loans, credit cards, rent etc.) to your income. Under normal circumstances, providing your income covers your outgoings (including the mortgage cost) by 35%, your application should be successful.Currently, most banks require a minimum loan amount of €250,000 euros, with a 30% deposit, a higher amount would help. Note that each mortgage lender will assess an application differently based on their lending policies which change throughout the year.
Due Diligence
As with any mortgage, a lot of documentation is required to process an application. Providing the required documents and paperwork are supplied in a timely fashion, and the application is filled out fully, a mortgage offer will usually be made within three to four weeks, it can take longer, a lot of patience will be required on your part and expect to have to do follow up emails and phone calls. You cannot accept a loan offer until the cooling-off period has expired; the French banks want buyers and investors to properly reflect on their decision before accepting the mortgage offer.Life Insurance in France
Life Insurance must be taken out to cover 99.9% of mortgages and loans in France. This standard procedure is to arrange for appropriate protection at the same time as the loan. Note that most banks and lenders will only accept applications if Life Insurance has previously been organised with a suitable policy to cover the period. You are under no obligation to take or accept the lenders offer, do it's worth shopping around for better deals and compare multi-policy offers.For example, you can apply for a quote for mortgage or loan insurance with our English speaking insurance partners in France in order for you to compare prior to making your final decision. And at the same time, request a quote for home and contents insurance, which as you should know, is mandatory on completion date.
To discuss your requirements, please fill out the form, our mortgage expert will be in touch promptly.
