French Euro mortgages

You are now ready to take your French property dream a stage further and are planning viewing trips to find the right property.

Sourcing a French Euro mortgage

If you intend to raise a mortgage to purchase your property in France, we are able to offer assistance with mortgages through our UK based Euro mortgages brokers. We also work with French banks which have a range of loan proposals to finance a property purchase in France.

Financing the purchase of an off plan property

French banks offer a tailor made mortgage service aimed at individual private investors. They have full knowledge of the off plan purchasing procedure and the stage payments schedule.

Mortgage quotations and guidance

English speaking advisors will guide you through the range of loans available to provide you with total security and flexibility.

Monitoring of your mortgage application

We will liaise regularly with your mortgage provider to ensure that your application is processed within the time scale required in your property reservation contract. Once the loan offer has been accepted we will ensure that all the relevant information is forwarded onto the French Notaire for the preparation of the Deed of sale.

Signing a property reservation contract subject to raising a loan

French law offers full protection to buyers who are raising a loan to finance the purchase of their off plan property. A dedicated section in the reservation contract requires completion and signing, stating the amount borrowed and confirming the time scale within which the application must be processed and the offer signed. This section which confirms the reservation of the French property subject to raising a mortgage is called a “Clause suspensive de pret” and allows the buyer to withdraw and to get his full deposit back should the application fail.

French Euro mortgage interest rates

Interest rates in France are still below the UK base rate and are an attractive option. The maximum borrowing (LTV) French bank will offer is 80% and loan duration varies from 12 years to 30 years.

There will be some variation in the rates French banks currently offer. The following are provided only as a guideline: (*as at April 08, excluding insurance)   

Fixed rate*

Variable rate*

12 years

4.40% - 4.55%

4.40% - 4.55%

15 years

4.50% - 4.65%

4.45% - 4.60%

20 years

4.55% - 4.70%

4.55% - 4.65%

25 years

4.70% - 4.85%

4.65% - 4.85%

30 years

5.00% - 5.15%

4.90% - 5.05%

Our recommendations

Whether you raise a mortgage in the UK or in France, do make sure that you have an agreement in principle from the bank before traveling to France to view your selected locations.

Mortgage applications can take several weeks and, as explained earlier, French property reservation contracts have strict deadlines with regard to mortgages. As a rule, the time limit to apply for a mortgage and receive an offer is four weeks from the date of signing the reservation contract. If the bank has all the required information in advance it will be able to confirm whether or not a mortgage can be granted. This in turn will allow you to establish your maximum budget and confidently reserve a property when the right one is found knowing that finances can be raised.

Your French property mortgage offer can then be finalized and signed within the time limit provided in the contract.

§   UCB (formerly Abbey National France) can offer mortgage products designed specifically for New Build and Custom Build property in France.

For further information on how to raise your French mortgage contact: celine.aurieres@ucb.fr

§   French-Mortgage.com

A UK based French mortgage specialist with access to a number of French banking institutions. They can offer a range of products to meet your needs.

For further information please contact: john@french-mortgage.com