Peter Brooke - French Mortgages
 10 KEY FACTS
1. As a non French resident you can apply to borrow up to 85% of the purchase price.
2. It is necessary to have enough cash to fund the deposit (minimum of 15%) plus the notary fees (approximately 8%). i.e. 23% of the purchase price in cash.
3. Depending upon your age you can borrow for up to 30 years.
4. Fixed, variable, capped, repayment and interest only loans are all available in France.
5. There are no specific ‘Buy-to-let’ products but some future rent can be taken into account when applying for the loan.
6. “Income is King!” in order to qualify your income must satisfy the Banque de France debt ratio calculation.
7. Net or Gross income may be used, depending upon the bank applied to.
8. There is a comprehensive list of paperwork required for each application. (click here for the list)
9. Rates vary dramatically from one to bank to the next, typically the best rates are for 80% repayment loans; the more unusual and flexible the finance solution the more expensive it tends to be.
10. Introductory rates rarely tell the true story of what you will pay long term. Many banks use the Euribor 3 or 12 month index plus a hidden margin.
To borrow or not to borrow...?
“I have enough cash to buy the property outright, why should I get a mortgage?”
Things to consider include the following…
Differences in interest rates in France and at home, Currency risk, Future re-mortgage or equity release, Costs of borrowing, French income, wealth and inheritance tax, Possible changes to personal situation directly related to income, Best use of existing capital, Rental income, Geared return, Geared risk…
To discuss the pros and cons of borrowing in France don’t hesitate to contact Peter immediately.
peter.brooke@spectrum-ifa.com
Tel: +33 4 93 00 01 13 Mob: +33 6 87 13 68 71 Fax: +33 4 93 00 01 14
Skype: pbrooke
Post: The Spectrum IFA Group, Mediathel, Routes des Cretes, 06560 Valbonne, France
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