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 using mortgage brokers who have in depth knowledge of the entire French mortgage market.
A typical current rate is 2.6% for up to 20 years fixed rate for the full period. Usual lending is up to 80% of the property value.
We have consistently found that brokers 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. They 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 contact us for the very latest competitive rates.
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. 4 x 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