A French Re-Mortgage on a property in France is possible, however, the guidelines governing this release are far more stringent that those in force in both the UK and Ireland.

As a general rule it is possible to release up to 70% of the net value of your French property – i.e. the total value less any existing French Mortgage on the property meaning that if you have a property which is valued at €500,000 with an existing mortgage of €200,000 you would in theory be able to arrange a French Re-Mortgage of up to €210,000 dependant on meeting with various bank requirements. An independent evaluator will be hired by the bank to give an evaluation of the property.

With regards to qualifying for the French Re-Mortgage the bank will apply the same rules as for obtaining a standard initial French Mortgage. You will need to prove that your outgoing obligations, including the new French Mortgage, do not amount to more than 33% of your earnings. Prior to asking for all of the requisite documentation French Mortgage Xpress will ask you to complete our pre-qualification form. This will give us some information on you and enable us to ascertain which French bank will best suit your needs but also to check existing debt levels to ensure that a French Mortgage is possible. This will save both you and the French bank time and effort and remember this can all be done from the comfort of your own home in the UK.

It is far easier to obtain a French Re-Mortgage if you are employed rather than self-employed. For an employed individual the bank will not necessarily ask the purpose of the French  re-mortgage whereas for a self employed individual the funds must be destined to pay off an existing loan (i.e. perhaps a loan taken out in the UK to purchase the property in the first place) or be destined to purchase an new property in the UK or Ireland. All supporting documentation in relation to a new house purchase or an existing loan will have to be provided to the bank.

Anyone looking into obtaining a French Re-Mortgage should be aware that upon your new French Mortgage being granted, you will be required to visit your notary (this will be the notary stipulated on the deeds to the property) in order to obtain the funds. As was the case with the initial purchase of the property this visit will incur a charge, as the notary needs to register the new French Mortgage with the land registry. The amount of this charge will be conveyed to you by your notary.

Any additional owners or people with an interest in the property as listed on the deeds to the property will need to be aware of the new French Mortgage even though it will not affect their ‘portion’ of the property and will act as a caution hypotecaire. They will need to sign the French Mortgage offer where indicated and they will also be required to present themselves before the notary for signature before the funds will be released.

Clearly in a scenario such as this only 70% of the proportion of the value of the property relating to the individual wishing to borrow is available for a French Re-Mortgage.

For further information on this type of French Mortgage, talking to an Independent French Mortgage Broker is essential. It is vital to be able to access as many different product options as possible and not just a bulk standard option from one particular bank. Complete the on-line Request a Quote form or call us now on +33(0)4.92.98.80.70 for your Independent French Mortgage advice.