FrenchMortgageService
Our Private Clients French Mortgage Service is designed for clients wishing to borrow over € 50 000 to finance a property transaction in France.

Our Service is Free to you the client
In many financial services markets, notably Anglo-Saxon markets, there is a clear distinction between fee based and commission based financial advice. We are commission based and as such you have no fees, such as a French dossier fee, to pay. Because of this our service is able to save you up to 2% of the value of the mortgage: This is explained more fully on our Consumers Guide page.

For clients who are seeking a mortgage of less than € 50 000 click here to go to our Going Direct page.

How to Proceed
Because the French mortgage process is so different from the British process, we suggest that we start by securing for you a personalised mortgage quotation, which will be arranged within 48 hours of receiving your completed Enquiry Form. This will reassure you that the mortgage you require is affordable and establish you as a valued client. We hold your details in confidence and it is then a simple matter to request an indication from the lender (often called 'pre-qualification' or 'offer-in-principle') that your application for a mortgage should be successful.

Conventional Purchase
Whether you are refining your property search or merely have a budget in mind, establishing an understanding with the lender now will strengthen your hand in the negotiation process and show the agent and vendor you are serious. When you are ready to sign a compromis de vente (preliminary sales agreement), you should already be in a position to specify the lender whom you have approached for your mortgage offer. 

Buy-to-Let or Leaseback
We have working relationships with specialist real estate banks who are experts in this market. For mutual protection, they will examine your contract and evaluate the builders and/or property managers, at no extra charge. This gives you peace of mind in a market which is comparatively unregulated. We also have specialist partners who will help you invest in buy-to-let or leaseback as a package, including choosing the property, rental management, insurance and rental guarantees and financing.

Buying off Plan (VEFA)
Our lending banks are fully versed in this market and can propose a financing package for you which minimises your outgoings during the construction phase. Your reservation contract with the builders, and the builders themselves (by reputation) will be evaluated by the lending bank as part of the mortgage process.

Loan-to-value ratios (LTV)
Loan-to-value ratios are typically 70% or 80%, but can be as high as 85%, of the net purchase price of your French property. Indirect purchase costs (legal fees, mortgage registration, etc.) can total 8% or more of the purchase price and are not financed by the bank.

Mortgage Types
Most standard mortgage contracts are repayment mortgages, with a monthly payment of principal and interest. Interest-only options are limited, although certain banks are now developing partial interest-only products, and we can introduce you to them.

Borrowing Limits
Consumer protection law requires the banks to limit the level of your repayments (including existing debts) to approximately one-third of your gross income.

Life Assurance
Term life assurance cover with a French insurer is mandatory. Property insurance also needs to be arranged prior to completing the purchase.

Funds Release
The process of issuing the funds, once the loan is approved, can take time. It is advisable to allow up to 12 weeks to complete the process. We can help to move the process forward and ensure your application is not left in a backwater. 

Interest Rates
Our lenders offer loans with variable, fixed or capped interest rates. The exact rate depends on the type and period of loan you choose and on the loan-to-value ratio. Because interest rates have been low recently compared to the UK, many of our clients have chosen variable-rate mortgages with an option to switch to a fixed-rate loan later, if interest rates change.
To illustrate just how affordable your euro-denominated French mortgage can be, we will be pleased to obtain a no-obligation illustration of a repayment mortgage (including required term life assurance) to fit your specification. Simply complete and forward the Enquiry Form and we will arrange this within 48 hours.

Statutory Warning
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured upon it. The sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements. A life insurance policy will be required for each mortgage. All mortgages are subject to status and are not available to those under age 18 years.

Whatever the mortgage question, the answer is BestFrenchMortgage