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French Mortgages

To have your finance for your French mortgage Approved in Principal, simply complete the no obligation
Questionnaire below. Our French mortgage expert broker will then source the best French Mortgage
deal for you and have it (where applicable) ‘approved in principal’ for your French property or home.

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  • Date Format: MM slash DD slash YYYY
  • Details of the property you are buying (if known)

  • Basic Financial details for the affordability test

French Mortgages
If you plan to purchase a property in France and you’re not a cash buyer, there are a range of ways to lift
the finances. Most would do so in their home country; maybe if you have enough equity in your current
home, you can choose to use it to take out a new mortgage, while others prefer to take out a French
mortgage. As always, take advice on how to secure the funds to buy your new home in France.
We will be able to provide you with a complete guide on a mortgage in France. If you’re searching for a
French holiday home mortgage, or your main home in France, we’re going to take you through the
different steps. We look at currency risk, mortgage forms in France, and the terms of French property
mortgages-eligibility requirements and interest rates. We consider who are the key lenders, equity
release mortgages, as well as the use of first-time buyers’ mortgages and others.

French mortgage interest rates
Historically, interest-rate levels in France have been far below UK rates. You need to be aware of the
importance of that difference.

For example:
You may expect to pay around £1000-€1500 less a year with a French mortgage on a loan of € 100,000,
with an interest rate difference of 2 percent. Therefore, over 20 years, you would be paying a lot more
in interest payments by re-mortgaging, than would be the case if you took out a mortgage on your
French house.
On the minus side, you have to balance this saving with the bigger currency risk you are facing. There is
no magic wand here and you need to be vigilant about headline prices, as you’ll probably find there are
strict eligibility terms. Most of France‘s mortgages are issued at a fixed rate base. Due to difficulties
securing protection against the loan, UK mortgage lenders are reluctant to lend against a French house,
so you’ll need to use a French lender. We will be with you each step of the way with our encouragement
and professional knowledge.

Remortgaging your home to buy abroad
If you re-mortgage your main home to buy a French property it goes without saying, if you are unable to
meet your repayments, you are at risk of losing your main home.

Tax Relief on French Mortgages
Mortgage tax relief has been abolished in France since January 2011 although current beneficiaries are
unaffected. Yet, loan interest on a property is tax deductible (French) against rental income. So, if you
bought a property in France to rent it out, you can deduct mortgage interest costs against rental
income.
If you are from the United Kingdom, this benefit applies only if you are resident in France, as the United
Kingdom authorities do not accept interest on mortgages against debt on rental income from UK income
tax. Debt on a property can also be counted against French inheritance tax liability.
If you are a resident or a non-resident, a mortgage may be used to will your tax exposure if you are likely
to face inheritance tax liability. However, French lenders usually mandate you to take out life insurance
in the event of your death, to cover the mortgage repayment.

For more information contact us today!

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