French mortgages and how they work
All mortgages are full status and proof of income and outgoings will
be required. French mortgages can be arranged for acquisition, renovation
ansconstruction. Re-mortgages and Equity loans are also available through
A deposit of 20% of the purchase price is required and you will also
be liable for solicitor's fees. Euro or Stirling mortgages are available,
and the minimum loan amount you can borrow depends on the lender you use.
Mortgages are generally Repayment loans and can be taken over a 5-25 year
term, although some mortgage lenders will be happy to provide Interest
Only loans. All mortgages should be fully repaid by the age of 70 and
life cover is required. The mortgage is secured on the property in France.
The mortgage is secured on the property and the mortgage funds will be
released by the lender to your notaire for completion.
French lenders assess eligibility for a loan on the applicant's ability
to service the loan and not potential rental income from the property.
The general guideline is as follows: of an applicant's net income 33%
should cover existing outgoings and the monthly repayment on the French
franc loan. If you are self-employed income is assessed as the average
of the last three years' net income. A percentage of rental and investment
income will also be considered. If employed a lender will base your income
on your payslips and the amount that is credited to your account monthly.
Outgoings considered are liabilities such as mortgage/rent in the UK,
personal loans and maintenance commitment.
For example - if you have a net monthly income of £2000 with a
UK mortgage of £500 and no other outgoings. Taking into account
33% of the income, that is £660, a borrowing with a monthly repayment
of £160 could be considered.