French Mortgages

Our French Mortgages are designed for clients wishing to finance a property transaction in France. For more information about the available French mortgage options go here.

Our French mortgage are completely free of brokerage fees to you the client. In many financial services markets, notably Anglo-Saxon markets, there is a clear distinction between fee based and commission based financial advice. We are commission based and as such you have no fees, such as a French dossier fee, to pay. Because of this our French mortgages save you up to 3% of the value of your French mortgage: This is explained more fully on our Consumers Guide page.

How to get your French Mortgage.
Best French Mortgage suggest that we start by securing for you a personalised French mortgage quotation, which will be arranged within 48 hours of receiving your completed enquiry form. This will reassure you that the French mortgage you require is affordable and establish you as a valued client. We hold your details in confidence and it is then a simple matter to request an indication from the lender (often called 'pre-approval' or 'offer-in-principle') that your application for a French mortgage should be successful.

Conventional Purchase.
Whether you are refining your property search or merely have a budget in mind, establishing an understanding with the French mortgage lender now will strengthen your hand in the negotiation process and show the agent and vendor you are serious. When you are ready to sign a compromis de vente (preliminary sales agreement), you should already be in a position to specify the French mortgage lender whom you have approached for your mortgage offer. 

Buy-to-Let or Buy and Leaseback.
We have working relationships with specialist real estate banks who are experts in this market. For mutual protection, they will examine your contract and evaluate the builders and/or property managers, at no extra charge. This gives you peace of mind in a market which is comparatively unregulated.

Buying off Plan (VEFA).
Our French mortgage lending banks are fully versed in this market and can propose a financing package for you which minimises your outgoings during the construction phase. Your reservation contract with the builders, and the builders themselves (by reputation) will be evaluated by the lending bank as part of the French mortgage application process.

Loan-to-value ratios (LTV).
Loan-to-value ratios are typically 70% or 80%, but can be as high as 85%, of the net purchase price of your French property. Indirect purchase costs (legal fees, mortgage registration, etc.) can total 6% or more of the purchase price and are not financed by the bank unless you are French resident.

Mortgage Types.
Most standard mortgage contracts are repayment mortgages, with a monthly payment of principal and interest. Interest-only options are limited, although certain banks are now developing partial interest-only products.

Borrowing Limits.
Consumer protection law requires the banks to limit the level of your repayments (including existing debts) to approximately one-third of your gross income.

Life Assurance.
Term life assurance cover with a French insurer is mandatory. Property insurance also needs to be arranged prior to completing the purchase.

Funds Release.
The process of issuing the funds, once the loan is approved, can take time. It is advisable to allow up to 12 weeks to complete the process. We can help to speed the process forward and ensure your application is not left in a backwater. 

Interest Rates.
Our lenders offer loans with variable, fixed or capped interest rates. The exact rate depends on the type and period of loan you choose and on the loan-to-value ratio. Because interest rates have been low recently compared to the UK, many of our clients have chosen variable-rate mortgages with an option to switch to a fixed-rate loan later, if interest rates change.

To illustrate just how affordable your euro-denominated French mortgage can be, we will be pleased to obtain a no-obligation illustration of a repayment mortgage (including required term life assurance) to fit your specification. Simply complete and forward the Enquiry Form and we will arrange this within 48 hours.

Statutory Warning
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured upon it. The sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements. A life insurance policy will be required for each mortgage. All mortgages are subject to status and are not available to those under age 18 years.