How much can I borrow?
Your debt ratio is a crucial element in getting a French Mortgage. You need to prove that you are receiving a regular income and that it covers all of your debts by a multiple of 3. These strict Banque de France lending laws state that you are only allowed to be up to 1/3 ‘in debt’. So, if you earn €3,000 per month – then your mortgages (including the new one), credit cards, car loans and other debt repayments cannot come to more than €1,000 per month. THIS IS CRUCIAL
What are the current French Mortgage Interest rates?
There is a wide variety of French Mortgage Interest Rates available; Interest Only, Standard Repayments, Interest Only/Repayment Hybrid, Fixed and Capped are all available. The best French mortgage interest rate for you will depend on various financial and personal criteria.
What is the application process?
It’s as simple as 1, 2, 3!
First, complete the on-line quote request form or simply give us a call. We need some basic personal and financial information to forward an initial quotation to you. It’s not worth asking you to complete a long and laborious form initially – we only need some basic information to get the ball rolling. We’ll send you a basic quotation giving you a couple of options.
Second, we can discuss these quotes in greater detail and really find out what type of mortgage is best for your personal circumstances. If you’re happy to move forward we will then require some more specific personal and financial information to enable us to recommend an exact product and lender.
Third, we send you the lenders specific application form to complete, request some further documentation and then forward all documentation and your completed application form to the final lending bank. Viola ! Remember this can all be done from the comfort of your own home in the UK or elsewhere.
What’s the Euribor?
Euribor is short for ‘Euro Interbank Offered Rate’. The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds from one another. There are different maturities ranging from one week to one year. The rates provide the basis for the price and French Mortgage interest rates in the Euro zone. Most variable French Mortgages are pegged to the Euribor 3 months, however, in certain cases the French Mortgage provider can opt for the one-month or the one-year rate.
Currently in 2010 these rates used for a French Mortgage are at historical lows. For more information on the Euribor see www.euribor-rates.eu
Is it better to get finance for the property in France rather than in the UK?
The main benefit of taking out a euro mortgage for your French property is to match the currency of the asset and liability and avoid any exchange-rate fluctuations. Plus, European interest rates are traditionally lower than those in the UK. If you are planning on renting your French property then you can offset the interest payments against the rental income on your French tax declaration. This is not possible if you have a mortgage outside of france.
What personal documentation is required?
1. Copy of passport(s)
2. Copy of Utility Bill showing name and home address
3. Copy of Marriage Certificate. (if applicable)
4. Copy of Divorce Certificate. (if applicable)
5. Copy of 3 month’s personal bank statements showing salary and any existing monthly loan payments.
6. Last 2 Year’s Income tax returns or P60’s
7. Last 3 month’s pay slips
8. If you are self-employed, balance sheet for the last 2 years attestation from your accountant confirming your income, and a copy of your latest 2 tax declarations
9. For 2 people purchasing together (married couple/ partner/ business partner): the French Mortgage application must be made in both names and signed by both parties
10. 2 x Insurance Questionnaires completed and signed
11. Reservation Contract or Compromis de Vente including plans and signed by Purchaser and Seller
What are the benefits of dealing with an Independent Mortgage Broker?
Save time, money and stress. An Independent French Mortgage broker has the advantage of being able to deal with any and all French Banks offering mortgages. This means that dependent on personal and financial circumstances – we are able to look through a large panel of lenders and recommend the best French mortgage to fit your specific circumstances. Let us do the leg work, it’s our job and we’re good at it.
What type of French Mortgages do you offer?
As an Independent French Mortgage Broker we have access to dozens of mortgage products. Our job is to look at your personal and financial circumstances and recommended the best product to suit those criteria, whether it be an interest only, repayment, cap and collar or variable rate.
Do I need a French bank account?
You will be required to set up a bank account in France. The mortgage payments will be deducted from this account. You cannot have the mortgage payments taken from your account in the UK or elsewhere.
Do I need life assurance?
It is compulsory to have life cover in France for the same amount as the loan value. As an Independent Broker we are happy to recommend some companies for you to help secure this necessary life assurance cover.
Why is it better to deal with a broker based in France?
Being local allows us to deal with the lending banks on a personal level and meet the lending bank personnel face to face. This personal relationship with the French Banks is fundamental to our success and in delivering our fast, efficient and professional service. These relationships give ours clients a huge advantage in speeding up the whole mortgage process. Our dossiers receive better attention from the underwriting teams and if any issues do arise – we’re on the ground to meet with the bank and deliver a quick and successful solution as fast as possible. Lets us take care of the stress while you’re back in the UK.