French Mortgage Advice
A Basic guide to French Mortgages (Pret Immobilier)
Eligibility & Criteria for French Mortgages
The French mortgages we source are in Euros and secured against French residential property. French mortgages (Pret Immobilier) are full status and therefore proof of income and outgoings will be required in order to submit an application to a lender.
The maximum loan to value (LTV) available is 90% of the purchase price which can include estate agent's fees but not the Notaire's fees.
French lenders assess an applicant's eligibility on their capacity to repay the French mortgage. As a guideline, your existing monthly outgoings as well as the monthly repayment on your new French mortgage should not exceed 33% of your gross monthly income. A percentage of any rental and investment income you receive can be considered in this calculation. Mortgage, rent, personal loans and maintenance commitments are all considered as outgoings. To find out how much you can borrow, complete our quotation request form.
French mortgage lenders will not consider lending to foreign companies but it is possible to create a French company for the purchase of a property. This is called a Société Civile Immobilière or SCI. This type of purchase may be advantageous for groups buying together and can minimise French inheritance issues. Before making a decision in regards to purchasing in the name of an SCI we recommend you seek legal and tax advice.
Types of Mortgages in France (Pret Immobilier)
A Mortgages in France (Pret Immobilier) can be obtained for the purchase of both new or existing properties, Gites and properties on Leaseback schemes.
Renovation and construction loans are available, however, estimates will be required at the time of application, and only accepted if they are from French registered builders. Once the mortgage has been approved, funds will be released by the lender directly to your builders following submission of invoices. In the case of construction loans, more detailed information on the project will be required, so please speak to one of our French Consultants.
You can raise capital on your French property. It is also possible to raise funds on your French property to redeem another mortgage you may have.
Remortgaging is available. However, this will incur costs both at the Notaire's office and with the new lender. We recommend that you check with your existing lender if any penalties will be payable for cancelling your existing mortgage.
Mortgage Products in France
A variety of products are available. Both interest-only and repayment mortgages can be arranged on a variable or fixed-rate basis, or a combination of both. Terms can be from 6 to 40 years, however loans must be repaid by the age of 80. Many of our products do not have any early redemption penalties. For an idea of the current rates available see our French Mortgage Best Buy Tables, or for a personalised quotation complete our mortgage quotation request form.
Documentation Required by the Lender
Under French law, lenders are required to have full documentation proving that the borrower can afford the mortgage repayments, and you will therefore be required to submit a number of supporting documents. Please see below for a summary of what will be required. A detailed list will be compiled based on your situation and sent to you with your personalised quotation.
You will need:
Proof of of identity & residence
Proof of income & outgoings
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