You will find in this section all the basic information about how to invest in France, how to get a French mortgage, how to transfer money and how to open a bank account.
Mortgages
You can easily obtain a French mortgage to purchase your property in France. If you are buying a home in France, there are three ways to raise the mortgage: against an existing UK property, providing there is sufficient equity; against the French property; or a mixture of both.
At first, there are certain things a potential buyer needs to know:
When you sign the reservation contract at the sales office, you must have already decided whether or not you are going to take out a mortgage because you will be asked to write this in French on the “compromis de vente” by the agent.
If you are taking a mortgage out, you must have it arranged and agreed before you sign your “Acte de Vente” (deed of Sale) at the Notary’s, usually two to three months after you have signed your reservation contract (“compromis de ventes”).
Mortgage options
There are various options as to where to obtain your mortgage or funding to finance your new purchase.
Mortgage through a French bank
There are considerations involved in borrowing money in another currency. With the right advice, however, even the most inexperienced borrower can successfully buy his dream home.
French banks are willing to lend money at very attractive rates and terms. As a non-resident you can currently obtain a 15 year mortgage for 80% of the property value with a 2.15% fixed interest rate (French residents can borow up to 100% of the property value, European residents up to 80%, and non-EU residents up to 60-65%).
Should you need more information we have good relationships with French banks offering attractive interest rates that we can recommend to you if you follow this link:
French mortgages are not based on the UK model of multiple incomes. Typically the calculation works on the principle that the total of the French mortgage payment, plus any UK mortgage or rent, plus any other long-term borrowings, should not exceed a third of the buyer’s gross monthly income.
The actual process of applying for mortgages in France, again is not difficult, and usually takes at most 2 to 3 weeks.
In summary, obtaining a mortgage for a French property is straightforward, especially with our help.
Re-mortgaging
It is common to re-mortgage in the UK to raise money for a variety of purposes. This is not so common with French lenders, although some are starting to offer mortgages on this basis, allowing the borrower to take advantage of rising values and equity. However, generally speaking, if you think you will need additional funds later, it is better to raise these at the time of purchase, when it may be easier to obtain the finance.
Money Transfer
When living in France, you will likely have to make ongoing money transfers. Perhaps to pay for a French mortgage, transfer your pension or pay for ad-hoc maintenance and living expenses from your UK bank account.
Opening a bank account in France
Opening a bank account in France is essential to pay the monthly instalments on your mortgage. In order to open an account in France, you just have to bring a few documents (copy of your passport, proof of address and bank statements), fill out an account application form and the bank will send you your account details with a RIB (Releve d’Identité Bancaire or bank account identity slip). It is that simple! To find out more about French Mortgage call us today on 020 7428 4910 or email us at [email protected]. We can assist you in arranging your finance to buy your dream property in France.