Getting A Mortgage In France

There are no restrictions on foreign ownership of property in France and as long as you can prove your credit-worthiness, it is not difficult for a British person to get a French mortgage.

There are some other alternatives to this, though:

– Remortgage your present home and use the equity to purchase your French property

– To take a second UK mortgage secured on either your UK home or your French property – some UK lenders offer specialist overseas mortgages

Having a UK mortgage in pounds sterling has the advantage of protecting you from changes to the Euro-Pound exchange rate.

On the other hand, interest rates in the Euro zone are usually lower than UK interest rates, so a French mortgage will probably be cheaper.

It might be worth discussing the options with an independent mortgage adviser specialising in overseas property to see what your choices are.

Getting Mortgages In France

Getting a French mortgage is very similar to getting a UK mortgage, although French lenders tend to be a little more restrictive in what they will lend:

· Maximum 85% LTV (loan to value)

· No non-status (self-certified) mortgages

· Some lenders will only offer repayment mortgages to foreign buyers

· Total monthly mortgage payments should not exceed 33% of net monthly disposable income – i.e. your remaining income after all other expenses

To apply for a mortgage, you will need to provide the following financial documentation, in addition to proof of your identity:

Employed

Employed mortgage applicants will need to provide:

· Past 3 months’ payslips

· Most recent P60

· Last 6 months’ personal bank statements

Self-Employed

Self-employed people must provide proof of income – self-certified or non-status mortgages are not available in France:

· Last 3 years audited accounts

· Last 12 months’ business bank statements

· Last 6 months’ personal bank statements

Rental Income

Renting your property out is permitted but potential rental income will not be taken into account in your mortgage application – you need to be able to show that you can afford the French mortgage payments without the rental income.

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