UK +44 (0)333 2200 430 | France +33 380 643 433
Loading...
French Residential Mortgages 2017-07-12T21:32:29+00:00

For clients looking to buy their main home there is the option of Interest Only and Capital Repayment mortgages

  • Repayment terms can be for up to 35 years.
  • Rates start from 1.91% variable and 2.4% fixed.
  • Capped rates start at 2% – 3.6%

Maximum Percentage Mortgage?

Note – these are based on net property price not including the Legal fees and/or Notaire fees.

UK Nationals –  if clients are living anywhere outside of France then up to 80% maximum for mortgage cases under 75,000 euros is possible, otherwise up to 85% maximum for cases of 75,000 euro and above. For clients who live or work in France higher percentages may be possible (up to 95%-100%).

Other EU Nationals – up to 80% maximum for holiday homes/secondary homes or up to 95% for a main residence.

Other Worldwide Nationals – this is normally up to 80% maximum, if the client is resident and working outside of France.

Mortgage Repayment Methods?
Repayment normally (“Capital & Interest”) Mortgages.
Part repayment / Part interest only schemes are also available up to 80% in Paris and the Cote D’Azur or 70% elsewhere. Mortgage terms are usually between 15 – 20 years only.
For cases over 200,000 Euros – “Interest only” is available up to 80% where the applicant can show evidence of net assets for 120% of the loan amount – i.e. all assets in EU (which can be property, savings, shares etc.* (less if there any borrowings on them). Terms are normally between 10-20 years.  For mortgages under 200,000 euros interest only is available up to 70% with a maximum term of 20 years.

Type of Security Required?
A first charge over the French property will be taken with the assignment of suitable Life Assurance.

Lending Areas?
Mainland France only.

Life Assurance (Life Cover)?
Mandatory  Life cover for the full amount of the loan (plus an allowance for exchange rate movements/term alteration on a non Euro policy) is required as a condition of any mortgage.

Lenders’ Own Arrangement Fee?
Usually this is 1% of the mortgage amount (Note – this is subject to each lenders minimum and maximum levels – which could be >1% or <1%, depending on actual amount borrowed).  This is not payable until an offer has been accepted.

Interest Rate Options?
Variable, Fixed and Capped rates available
Please note that on variable rate mortgages, the usual convention in France is not to alter the Euro monthly mortgage payment but to reflect changes in interest rates by altering (i.e. extending or shortening) the mortgage term itself

Mortgage Currency Denomination?
Euros only

Minimum Loan Amounts?
50,000 euros minimum

Term of Mortgage?
The minimum term is 5 years with a maximum of 25 years.   It is not normal to take beyond retirement age although it is sometimes possible up to 70 years if there is evidence of a good pension and/or investment income.
There is a 25 year term also available provided this does not take the client past his 70th birthday.

Mortgage Repayment Methods?
Normally Repayment (“Capital & Interest”) Mortgages.
Part repayment and Part interest only schemes are available up to 80% in Paris and the Cote D’Azur or up to 70% elsewhere. Mortgage terms normally between 15 – 20 years only.
For mortgages over 200,000 Euros – “Interest only” is available up to 80% where the applicant can show net assets of 120% of the loan amount – i.e. all assets in EU (which can be property, savings, shares etc. less any borrowings on them).  Normally terms of 10-20 years.
If the borrowing is under 200,000 Euros then interest only is available up to 70% with a maximum term of 20 years.

Life Assurance (Life Cover)?
Mandatory  Life cover for the full amount of the loan (plus an allowance for exchange rate movements/term alteration on a non Euro policy) is required as a condition of any mortgage.

Type of Security Required?
First charge over the French Property with the assignment of suitable Life Assurance.

Lending Areas?
Mainland France only.

Lenders’ Own Arrangement Fee?
Generally 1% of the mortgage amount (Note – subject to each lenders minimum and maximum levels – which could be >1% or <1%, depending on amount actually borrowed). Not payable until offer accepted.

Interest Rate Options?
Variable, Fixed and Capped rates available
Please note that on variable rate mortgages, the usual convention in France is not to alter the Euro monthly mortgage payment but to reflect changes in interest rates by altering (i.e. extending or shortening) the mortgage term itself.