Finance

FRENCH FINANCING FOR YOUR PROPERTY

Buying property in France has had a huge advantage to foreign property investments due to the fact that their banks have a special mechanism to lend to investor clients living outside of the country, which is very rare to find in other countries around the world.
If you require financing, the very first step to take when purchasing a property in Franc is to speak to professional French Mortgage advisors to ensure all the necessary questions are answered and the following points below are well covered. The French Mortgage broker that we can recommend deals with all the main banks in France and have the best packages and rates that is available. It’s also important to find out if your property has been approved by the banks before purchasing & Property Chic’s property profile are all approved by the French banks for financing.
Each Bank will have their own rates, terms, and criteria’s for qualifications. Our French mortgage broker will decide which bank will be more suited to your personal circumstances to get the approval required. They will make the process as smooth and clear as possible.
Usually you will find that most banks will lend between 70% – 90% Loan to Value depending on your financial situation and on the property you’re purchasing.
Steps to take

French Banks will lend finance for;
– French Leaseback Properties in France
– Buy to Let Properties in France
– Resale Properties in France
– Equity release & refinancing mortgages

Steps to Take
1. Property Chic will organise a phone appointment with a well-known mortgage advisor to start the process, please request this first.
2. Mortgage broker will ask all their questions regarding your financial situation to get pre-approval amount that the French bank will lend.
3. The Loan to Value, the rate, the term will be established after your conversation.
4. Clear and transparent cash flow will be illustrated to show you exactly how much your property will cost including all your purchasing costs and fees.
5. Before placing your deposit the total down payment required and the monthly shortfall is clearly established before proceeding.

Main Benefits for taken out a French Mortgage
– The bank will take the property that you’re purchasing as security rather than your own principle home.
– Interest paid on your mortgage will be off-set against your tax liabilities that you receive on your rental income for French leaseback properties.
– Fixed rates throughout your entire mortgage is available which is very popular in France and very attractive.
– Interest Only and Repayment Mortgages are available
– Deferral periods are available, this is important to have, when purchasing a new property it can take up to 2 years to build, in this time frame you are required to pay the stage payments of the property. When a deferment period is put in place it means that you don’t have to start paying for your mortgage until completion or even sometimes until you receive your first rental income.

French mortgage brokers will also carry out the following requirements that is compulsory.
– Life insurance is compulsory in France to cover your entire mortgage.
– French Bank account will be opened
– Direct Debit will be set up
– All paperwork will be in English and a simple process is put into place to save you time and money.

French Mortgage Rates;


Rate Term  LTV

2.80% 20yrs 80% Tracker mortgage +2%
3.00% 25yrs 80% Rate capped+2.10%
3.40% 20yrs 85% Rate capped+1.7%max 5.10%
3.85% 20yrs 80% Rate fixed for the term
4.05% 20yrs 80% Rate capped+1.5% for 10yrs
4.50% 30yrs 80% Rate fixed for the term