French Mortgages

Welcome to FrenchMortgageHelp.com

French mortgage help is your online source for free advice about French mortgages. Here you can find up to date information on the current "French mortgage rates", what documents you need for your French mortgage application (the checklist), and the latest news on mortgages in France.

You can also access our online English-French mortgage dictionary and our French mortgage calculator to determine your predicted repayments.

French mortgage advice

French mortgages for UK residents - maximum permitted in France, of 85% of the valuation or purchase price of the property.

French mortgages are Euro mortgages, payable in euros, based on the European base rate of interest, currently running at 3.92% as opposed to the UK Bank of England base rate of 5.25%.

Its always advised that the loan be in the currency of the origin of the property to prevent exchange rate fluctuations affecting the value of the mortgage as again the value of the overseas property. For further information on the European rate of Interest for mortgages (EURIBOR) see www.euribor.org.uk.

Arranging a French Mortgage

Its always best to arrange their financing before looking at properties and placing non-refundable deposits. This ensures affordability checks, risk assessment, maximum lending limits as well as checking of the registration of the property can be performed before you part with the usual deposit of 10%

Purchasing in France as opposed to the UK always means a higher initial outlay in government fees and taxes. You should always judge the total costs to complete a purchase to be 9% of the declared value of the property.

Mortgages are available for purchase and renovation and leaseback. Mortgaging an already owned property can mean that you are restricted on the choice of products and the use of the equity released will need to be disclosed.

French Mortgage Law

Mortgages in France, irrespective of the origin of the Lender, are governed by French Consumer Law. This means that all lenders work within the same confines for affordability. In general terms being that 35% of your evidenced monthly net income must cover all UK monthly credit outgoings in addition to the monthly French mortgage payment.

Properties requiring renovation will need to be clarified by an Architect. All renovation funds will be paid directly to the builder NOT the client, Lenders will insist on the works being undertaken by French Companies.

Self Certification is not an available option. Self Employed - only income proved by tax returns and accounts can be taken into account. Rental income from the property is not taken into account in calculating your mortgage affordability.

In most cases lenders will require extensive documentation including passports, P60s/Tax returns Payslips/Accounts, property documents, bank statements, birth and marriage certificates, proof of deposit, credit history and employers letter. Life Insurance is compulsory and necessary for a mortgage offer to be issued.

The use of an independent Lawyer is always recommended.