Getting a French mortgage

Getting a loan from a French bank is not always easy.

For a start you may not speak the language very well and then there are all those forms!

The answer is to work through someone like us. We are independent French registered brokers but with this difference  – we are of UK origin, we speak both languages fluently and we have already helped many clients find the right lender and the best terms.

FRENCH BANKS

Like in the UK French lenders offer  a wide range of products:   

French Residential Mortgages

French Second  Home Mortgages

French Investment Mortgages

French Re-Mortgages

French Equity Release Mortgages

French Lifetime Mortgages

French Land Loans

French Construction Finance

French Bridging loans

French Commercial Mortgages

The French banks are strictly regulated and can prove a minefield to the unwary. Using a company like ourselves who are fluent in both languages and very familiar with the systems can help prevent many unnecessary problems.

Justin France Financiers specialise in French Finance France. French Loans - French Mortgages in France - House Loans - Equity Release - French Finance - Buying in France. For all types of French Mortgages in France please contact Us. Mortgages in France. To get a house loan for a French mortgage in France. Finance in France. Financial help.The French Mortgage Process THE PROCESS It is worth noting that when you agree a house purchase in France you sign an initial contract entitled 'Compromis de Vente' It is essential that you have a clause inserted in this document that the purchase is subject to finance. If this is not done and you later withdraw from the sale you will lose the 10% deposit.In order to help you through the process we take you through several stages; Establishing your Requirements.It is a good idea to discuss your project with us before you begin searching for a new property. We can then establish, in theory, how much money you can borrow and what the financial implications might be in terms of your budget.Assessing Your Status. Once we have established your requirements we can begin the process of obtaining an 'In Principle' decision from the lenders. This can be quite a protracted issue and the detail required by the banks can be microscopic. Once the bank have assessed your dossier they will make a decision. Our assistance, at this stage, can be critical. The Offer. After you have received an offer from the bank there is a ten day cooling off period. At the end of this time the banks will notify the notaire to whom the money will be sent. The notaire will organise a signing will the vendors and that will be that! We are there to help at every stage of this procedure! The French Mortgage System     French Banks are regulated by the government in order to protect  the consumer from irresponsible lending. This has the added benefit that the traditional French conservatism has - to some degree - protected the system during this current financial crisis. The traditional French caution means that they will not lend to people who are unable to repay the mortgage. If mistakes are made with the application forms then the French banks will reject the mortgage. Once rejected by a French bank it is impossible for that applicant to re-apply to the same lender even if their circumstances have changed.  FACILITIES Fixed Rate French Mortgages, being 1, 3, 5 or total term. · Please remember that when taking out a fixed mortgage with any French lender,   you will be liable for a 3% to 5% redemption fee if re mortgaging at a later stage, but once the fixed rate period is over, it should then revert to a ZERO redemption FEE · Capital  Re payment and Interest Only French Mortgage Programs · French Mortgages up to 40 years or a maximum of 85 years of age · French Mortgages up to 115% LTV ( Loan to Value) on purchases NB This is for people who are tax  resident in France, otherwise the maximum LTV is 85% including agency fees bringing the total LTV to 92% LTV · French Re-Mortgages up to 85% LTV · French Equity Release Mortgages up to 70% LTV · Bridging Finance up to 70% LTV · Land Loans up to 80% LTV plus 100% of the Construction Finance Please note that Life Insurance is compulsory with all lenders in France. How it works French Interest Rates  French banks fix different rates   for different types of loan e.g.  For a purchase or re-mortgage, the rate can be lower by as much as 1% than for an equity release. What value loan can I achieve? Normally, the French banks will only lend up to 33% of your total income. However, they can base your mortgage term up to the age of 85. There are some lenders who will lend up to 40% of total income depending upon circumstances. Another advantage of the French banking system is that they can add years to the mortgage instead of raising the mortgage every time there is an interest increase. That would mean that your mortgage repayment is relatively static depending on your particular circumstances. This could be a major benefit depending on the lifetime of your mortgage. SAMPLE MORTGAGE INTEREST RATES Facility TERM - MONTHS AGE % Capital & Repayment - Purchase 240 70 2.60% Capital & Repayment - Purchase 480 85 3.25% Capital & Repayment - Re Mortgage 300 85 3.25% Interest Only - Purchase 240 80 3.50% Interest Only - Equity Release 240 80 3.75% Capital & Repayment - Equity Release 300 80 3.75% Construction Finance - Deferred 300 80 3.75% Bridging Finance 24 70 3.50%   Please note that the rates quoted are for guidance only - We will be happy to quote fixed rates at the time of application.   Mortgages for French properties in English.