Property Finance in France
Overseas Mortgages Direct's Guide to Property Finance in France.
At a glance:
| Mortgage | Refinance | Equity Release | Buy to Let | |
| Maximum Loan to Value | 90% | 70% | 50% | 50%* |
| Maximum Interest only period | 10 years | 10 years | 0 | 0 |
| Maximum term | 30 years | 30 years | 30 years | 30 years |
| Maximum age on completion | 70 | 70 | 70 | 70 |
| Average interest rates | 5.1% | 5.1% | 5.1% | 5.1% |
| Average monthly price per thousand | 5.44 | 5.44 | 5.44 | 5.44 |
Maximum Loan to value 80%
Maximum Interest only period 10 years
Maximum Term 30 years
Maximum Age on completion 70
Average interest rates 5.10%
Average monthly price per thousand (annuity) 5.44
Process:
Arranging a French mortgage requires close attention to detail in regard to the banks specific requirements. While Overseas Mortgages direct takes care of this on your behalf, it is important to emphasise to your client that, more than any other country, French banks will not compromise on their criteria. If an application is incomplete in any way, and consequently declined, this decline is recorded in the French central bank, thereby influencing any further mortgage applications.
Off plan mortgage products are readily available with all banks, where the bank approves the client for a mortgage before the property is built. In some cases the developer is happy with the approval, but in most cases, the client must draw down on the mortgage in advance of completion. This is common place and there are strict regulations protecting the client from the developer either going into liquidation or reselling their units.
In France, the bank checks are very thorough and may take time. Insurances are also expected on all purchases, both life and property.
Approximate timelines (weekends not included):
| 1. | Approval in principle | Instant |
| 2. | Final licenses | Day 1 |
| 3. | Property registration details | Day 1 |
| 4. | Application (receipt of documents) | Day 1 |
| 5. | Power of attorney | Day 1 |
| 6. | Confirmation of approval in principle | Day 10 |
| 7. | Valuation | Day 15 |
| 8. | Formal offer | Day 21 |
| 9. | Arrange signing | Day 30 |
| 10. | Signing | Day 33 |
| 11. | Transfer of deeds | Day 33 |
| 12. | Payment to developer | Day 33 |
| 13. | Agency of service | Day 34 |
| 14. | First mortgage payment | Day 33 |
| 15. | Commission received | Day 51 |
Costs:
For guidance purposes, as costs vary from lender to lender:
| Cost | Amount | Payable |
| Application / bank fees | €200 | Up front |
| Valuation fee | €500 | Up front (refundable) |
| Opening Commissions | 1.5% of loan amount | On signing |
| Registry / Notary fees | 1% of purchase price | On signing |
| Agency of service | €120 | Annually on signing date |
Currencies:
French Mortgages are available currently in Euros, GBP, US Dollars, Swiss Francs, Canadian, Hong Kong, Singapore, Australian and New Zealand Dollars.
Source: Overseas Mortgages Direct