Property ownership in France

The good news for UK based buyers of Investment Property in France is that there is an abundance of property all over the South of France; a restored Mas, stylish new builds, pieds-a-terre, family villas or even winter sports apartments. Capital appreciation is good and rental yields are strong. There is no better time than 2010 to acquire an Investment Property in the South of France.

A good rental yield from an investment property can be achieved with so many tourists and the enormous quantity of conferences throughout the year especially in Cannes, making the South of France an excellent choice for your Overseas Property Investment.

Compared to the UK, a long history of prudent lending in France has meant mortgage finance in France is still readily available and great value. Coupled with an approximate discount of 10% on French property prices a year ago – there is no better time than 2010 to acquire an Investment Property in the South of France.

Terms:

• No penalty on early redemption
• Convert to a repayment mortgage at any time with no penalty
• Max term 20 years
• Minimum loan – €100,000
• 40% deposit required

These are some of the questions we are asked on a regular basis. It may well be that you live in France and have a good long-term relationship with your high-street bank. If you talk to them about your French Mortgage you might receive a loan offer for your intended purchase which may satisfy your needs but………. it will probably be a mortgage product just from that particular bank.

For the vast majority, and especially UK based or non-resident buyers, it is quicker and more effective to use the services of a licensed, qualified and experienced Independent French Mortgage Broker. An Independent French Mortgage Broker can look at your specific circumstances and then look through a panel of lenders and find you the best possible French Mortgage product and interest rate for your specific requirements. It is also advantageous to choose a broker that is actually based in France. The Mortgage Broker actually based in France has a massive advantage of being able to sit in front of the lending banks and deal with any possible delays in person and quickly. They naturally have a better personal relationship with the French Bank lending teams. This will all equate to the customer receiving a better and quicker service.

There are some important advantages for the customer when buying a Property in France and looking for a Mortgage in France as a non-resident or even if you’ve lived here for some time.

1. We speak your language and can explain the process to you and communicate with you throughout the process. We will supply all the documentation to you in English. Plus, we’re based in France – just 10km from Cannes and Nice. You can do everything from the comfort of your own home in the UK.

2. An experienced Independent French Mortgage Broker in France has a panel of lenders which he or she uses to place your French Mortgage loan application with.  These lenders will almost certainly have international departments specialising in dealing with UK and other non-French residents purchasing a property in France. This means that the underwriting teams of these banks will understand non-French tax situations and other documentation that a French High Street bank might simply not know what to do with.

3. Brokers such as French Mortgage Xpress do not charge a brokerage fee. They receive their compensation from the lending bank on completion of the French Mortgage loan process. This fee is not added on to your application. The bank pays this directly to the Broker. The interest rate you receive in your offer will not be higher than if you applied directly to the bank in question. In many cases, the rate will be lower owing to the volume of business that the broker conducts with the lending bank.

4. Owing to the privileged relationship between the broker and the lending bank, your loan application is more likely to be treated within a faster time frame and with more consideration than if you were applying on your own or through a bank branch. The underwriting teams within the French Bank will probably prioritise the applications from your Independent French Mortgage Broker.

The above 4 points are crucial to making your whole French Property purchase go as quickly, as smoothly and with the least amount of pain as possible. Plus, you will be getting a French Mortgage product that is matched specifically to your needs and requirements.

Remember, this can all be done form the comfort of your own home in the UK!

The 6 best reasons to get a Loan Pre-Approval for your French Mortgage

1. Getting a formal pre-approval letter from French Mortgage Xpress can tell you the maximum a lender is likely to loan you for your new French Mortgage, which will help you narrow down your property search to within the price range you can afford.
2. You can get an idea of what your monthly re-payments will be for your French Mortgage on your new property in France.
3. You’ll have more credibility with the real estate agents and with vendors if your French Mortgage is pre-approved. Some agents won’t take you seriously until you have the pre-approval. They don’t want to waste their time, or yours. If you’re making a special trip form the UK this is vital.
4. French Mortgage loan approval takes time. If you wait to apply for a French Mortgage after you’ve actually made an offer, you could lose out on the property to someone else who already has the finance in place or has their French Mortgage pre-approved.
5. The lender can often lock in an interest rate, which protects you if rates rise while you are looking for your new property.
6. Pre-approval gives you at least some peace of mind, which you will appreciate during the often stressful process of buying a home, especially one in another country.

Don’t confuse loan pre-approval with pre-qualifying for a French Mortgage. Lenders will often pre-qualify a would-be buyer based on what you tell them about your income, employment and basic credit information, like how much you currently owe on credit cards or other loans. The lender is not agreeing to loan you money or committing to an interest rate. But the process can tell you whether it makes sense to move forward in your home search.

Loan pre-approval is a more formal process. You’ll need to provide your Independent French Mortgage Broker a lot of information about yourself, especially about your income and outgoings and general spending and saving habits.

If you get pre-approved for your French Mortgage, you’ll receive a letter telling you the maximum loan you can get and some sample interest rates you could qualify for.

The 1st step in arranging this Pre-Approval letter is to complete the on-line French Mortgage Quote Request Form or give us a call on +33(0)4.92.98.80.70