Getting a mortgage to buy your French property

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WE are often asked for advice on how to go about getting a mortgage to buy french property. Here we answer some of the most frequently asked questions.

So far, France has managed to avoid the credit crunch that other economies have experienced.

Premier French Property partners with a several French lenders and are happy to arrange mortgages for prospective overseas borrowers.

How do I go about obtaining a mortgage in France?

To obtain a mortgage the borrower must submit an application supported by personal income tax returns from the last two or more years. A medical examination may be required, especially if the borrower is over 55 years old.

Is it hard to get a mortgage?

No, it is not hard to obtain a mortgage. As French law requires life insurance on the loan so that the lender is paid in case of the borrower's death, older buyers may have to meet certain medical requirements and may have slightly higher payments.

As in any country, a French bank wants to see documentation of the buyer's credit-worthiness. Premier French Property can assist in the mortgage application process.

What is the minimum down payment?

The minimum down payment will vary according to your credit-worthiness. It can be as low as 15 percent, and as high as 50 percent.

Generally French banks are stricter with overseas borrowers, requiring a higher percentage down payment and a shorter payoff period than they might grant to a French borrower.

The maximum mortgage currently available from a French lender is 85% of the purchase price.

Is it possible to arrange a bridging loan from my property outside France for my French property?

No. French lenders will only arrange a bridging loan from one French property to another.

Can I get a mortgage contingency clause written into the compromis de vente (agreement of sale)?

Yes, a mortgage contingency clause is a common feature of the compromis de vente. This clause is commonly called Obtention du pret

What is the most efficient way to make monthly mortgage payments?

You can arrange for the lending bank to make automatic monthly withdrawals from your bank account.

The lending bank and the French bank where you have your current or checking account may or may not be the same institution.

If you need to change currency , i.e dollar or pound sterling to euro, ask us about monthly payment plans from foreign exchange companies for the best exchange rates

How long do I have to obtain a mortgage?

Generally a buyer has 45 calendar days from the signing of the compromis de vente in which to obtain mortgage commitment from a lender. A buyer can try to negotiate a longer period, but few sellers will be interested in granting an extension unless there are extenuating circumstances.

What happens if my mortgage is not approved?

If your mortgage application is not approved within the agreed-upon period, your deposit (generally 10%) is refunded and the sale is voided.