Paris is one of the world’s most visited cities, and always an attractive option for international buyers looking to purchase a property in France.
Due to the restrictions placed on property development, there is always a great deal of demand for good quality apartments in the centre of the city. This means that property prices have remained high in the French capital. If you are thinking about buying a property in Paris, be prepared for some tough negotiations on the price.
However, there is a more positive side when it comes to arranging a French mortgage. Lenders in France look very favourably upon buyers in Paris, and a wide range of French mortgage products tend to be available from a variety of banks.
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Information correct as of 25/07/2016
Due to the European Mortgage Credit Directive and new FCA regulation relating to French mortgages, this page is in the process of being updated.
If you would like any information about the French mortgage rates currently available in this region please call the team on +44 (0) 207 484 4600, or request a quote here.
Here are a few factors to consider if you’re thinking about financing your property purchase in Paris with a French mortgage:
- Be sure to apply for pre-approval for your French mortgage. Property owners in Paris tend to be inundated with offers when they decide to sell up, and they will always favour offers coming from buyers who have already secured an agreement in principle for a French mortgage.
- The property market is very strong. Prices are high but bank valuations tend to come back positive, so a French mortgage is rarely put at risk by the bank refusing to take a guarantee on the property being financed.
- The Parisian market is very seasonal. The market is at its strongest from late February to the end of June, and then from September to early December. Be careful to time your mortgage application well, so that you are not left pushing ahead with your property search in August, when the market is at its slowest.
- Paris is popular with buyers from all over the world. If you live and work outside the European Union, different restrictions will apply to the French mortgages that retail banks make available to you. Make sure you check the situation with the different lenders in advance of your application.
- International private banks will often offer mortgages for property purchases in Paris. Their products may be more flexible than the French mortgages offered by retail banks, but be aware that they may require you to enter into a wider banking relationship.
- If you wish to let your Parisian property out, be aware that buy-to-let mortgages do not exist in France as they do in the UK. Any potential rental income cannot be included as part of your French mortgage application, and you will therefore have to prove your existing financial situation is healthy enough to support the new French mortgage repayments.
- The seller may look more favourably upon your offer if you remove all clauses allowing you to withdraw from the transaction. The most common such clause relates to obtaining the French mortgage – if you are satisfied with the pre-approval you have received from the bank, removing this clause could give you a better chance of having your offer accepted.
- There can be financial planning benefits to having a French mortgage secured against your property. A professional tax consultant will be able to outline the benefits with respect to wealth tax and offsetting rental income against mortgage interest (should you intend to let out your property).
If you’re thinking of making a purchase in Paris this year, be sure to get in touch with Mortgage France before you start looking at properties. Our team of specialist French mortgage consultants will put you in the picture regarding the types of mortgages that are available, and will be able to secure that all important French mortgage pre-approval for you. This is the perfect way to get on the right track to owning your own piece of the City of Lights!