Mortgages

MAISON INDIVIDUELLE RECOMMENDS: CAFPI - France's No 1 Mortgage Brokers

When it comes to financing your French property purchase you may have several options: release capital in the UK, obtain a UK mortgage on the French property, or obtain a French mortgage. French mortgage's have always had many advantages, from lower interest rates to reduced risk. However a wide variation can exist in the availability and value of French mortgages to UK purchaser's of French property, and it is important to shop around to make sure you are getting the best deal possible - which is why Maison Individuelle recommends CAFPI who are the leading mortgage brokers in France and have in depth knowledge of the entire French mortgage market.

We have consistently found that CAFPI have been able to obtain better value mortgages for our clients than have been obtained by going direct to the more prominent and well advertised French banks. CAFPI also provide a great deal of assistance in making sure your loan application is complete and well presented before it goes to the lending institution - maximising your chances of being accepted for the mortgage you need at the most competitive rates.

For more information on French mortgages please visit the CAFPI website or contact Jonathan Woodcock at j.woodcock@cafpi.fr.

How much can I borrow with a French Mortgage?

Most French lenders apply the same lending criteria to how much you can borrow.  This does not work on the income multiple approach which is common in the UK (i.e. 3x your income).   Instead a lender is looking at “affordability”, more specifically your ability to repay the loan.   Your income will be assessed as the amount confirmed on either your P60 if you are employed or average net income on the last three years’ company accounts or tax returns if self-employed.  Your outgoings will be liabilities in your name such as mortgage(s) & personal loans.   There may be some variation between banks but the following calculation is a good guideline:

Monthly income x 35% minus existing monthly outgoings

= disposable monthly income to be used toward the French mortgage

For example: Mr & Mrs Dylans’ joint annual income is £60,000.  Mr & Mrs Dylan have a monthly mortgage repayment of £800 & a car loan of £200.  Monthly income is £5,000 and 35% of this is £1,750.  Outgoings total £1000 which leaves disposable income of up to £750 which can be used toward the monthly repayment of a French mortgage.

If you are thinking about buying a property in France, and wish to learn more about the different ways in which this can be accomplished, Maison Individuelle would be happy to hear from you on 01707 376255.