Buy This Lovely Property With A French Mortgage
If you wish to raise finance for the purchase of a property in France it is a good idea to check out French mortgages. French mortgage lenders are very willing to offer loans for French property purchase to non-resident buyers, so you do not need to rely on re-mortgaging your existing home or on an international lender in your home country. All French mortgage providers have bi-lingual staff to assist throughout the process of raising finance for French property purchase.
Handy points to consider when financing your French property purchase;
- French mortgage interest rates often compare favourably to those in the UK, so it is frequently cheaper to purchase your French home with a French mortgage, rather than re- mortgage your existing home. Having a French mortgage for your French property also safeguards your U.K. home.
- However, if you are buying a home in France, and you are continuing to derive your income from the U.K., you need to weigh up the currency risk associated with obtaining a euro mortgage.
- You will receive a formal mortgage offer from a French lenders Formal offers are only given once you have signed the first contract (Compromis de Vente) for the property, but you should try to obtain a pre-approval mortgage certificate which can be useful in price negotiations.
- If you do not live in France you will need to supply plenty of supporting documentation and the process may well take some time to complete.
- Most French lenders will not offer mortgages greater than 80% loan-to-value, but the figure may also be lower or higher depending on your circumstances.
- As a general rule the mortgage repayments must not exceed 33% of your net income
- French lenders offer both fixed and variable rate mortgages, and whilst the latter are tempting they are also likely to include tougher early redemption penalties.
- Mortgage insurance protection is mandatory and the arrangement fees can also be high so be sure to allow for these costs in your budget.
Use BNP to make your French mortgage arrangements easy
Whether you are looking to buy a second home or take up permanent residence our partner mortgage provider, BNP Paribas International Buyers will offer you the best financial solution.
Their multilingual and multicultural advisers will explain the French mortgage market. They will assist you throughout the purchase from the initial search for the best mortgage solution right up to the payment of your final instalment.