Mortgages in France

How to finance your property purchase is obviously a huge consideration for all buyers. If you are not in the fortunate position of buying a property with cash then you will need to get a mortgage. Below is a summary of the different options available to British property investors looking to by in Courchevel

 

 

Generally, French mortgage rules are fairly similar to the UK, however lending criteria can be a little stricter but French lenders are offering longer terms for very good value fixed rate mortgages.

 

Fixed term mortgages are great because you will know your Euro liabilities for a long time. However, a big problem for British owners is the exchange rate, so there is never any certainty of the real cost of a French mortgage if your income is in GBP.

 

Typically French lenders will not exceed a loan to income ratio of 33% though some lenders will increase this percentage for higher levels of income. They often will only lend 80% of the value of the property.

 

 

Most high street banks will offer specialist products for overseas property purchases. It is often easier to obtain a mortgage from a UK bank as they will have ready access to your lending history. You can also eliminate any risk from currency fluctuations.

 

Though these products are often not as good value as a local mortgage

 

 

As British buyers tend to be purchasing a second home in France they may be able to remortgage their UK residence to finance their purchase