For a variety of reasons, taking out a French mortgage is often the most suitable and cost-effective way of financing the purchase of a new home in France. Yet it can seem a daunting process, One obligation that you will need to fulfil when taking out French mortgage is life insurance. Mortgagefrance.com will help you every step of the way. and there are both similarities and differences between French mortgages and the ones that international buyers may be used to. Here are some introductory pointers to consider when arranging your mortgage in France.
- Firstly, bear in mind that only a French bank can legally secure a mortgage against a property in France. It is no use trying to apply for a mortgage in your home country.
- Consider your affordability. In France, the size of the mortgage offered to buyers does not just depend on your level of income. Instead, banks calculate the debt burden of potential borrowers in order to gauge how much they are willing to lend.
- Act early. The shrewdest buyers apply for an agreement in principle with the lender, in order to pre-approve their borrowing power before committing to a purchase.
- Check the mortgage rates. International buyers are often pleasantly surprised by the low interest rates available for mortgages in France.
- Choose your product. An extensive range of mortgage products are available with the different banks. These include variable, fixed or capped rates over terms from 5 to 30 years, on both a capital repayment and interest only basis. Use our French mortgage calculator to check how different lending terms will affect your monthly repayments.
- Start collecting your paperwork. French banks require a full mortgage application to arrange the financing. This must contain a comprehensive pack of paperwork relating to the borrower’s profile and financial situation, including identity documents, bank statements, tax returns, and more.
- Take care of the extras. French mortgages are almost always denominated in Euros. Borrowers in France are required to open a French bank account into which they must transfer funds, and must also arrange life assurance and home insurance
This is just for starters, and we have so much more information to offer you! Our expert French-speaking mortgage consultants are here to answer your questions, and to help you right from the word go. Request a quote today, and take the first step to finding the right mortgage for you…