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.

 Please note that the rates quoted are for guidance only - We will be happy to quote fixed rates at the time of application.