Financing your purchase
Mortgage options when purchasing off plan
Consider how you will be financing your French
property purchase before visiting the areas
and the residential developments which are of
interest to you.
If you are raising a mortgage, investigate the
options as early as possible. Most French mortgage
lenders will give a decision in principle before you
decide on a particular property. This will also give
you an idea of the price range you should be looking
at.
a. French Mortgages: French banks will lend up
to 85% of the property purchase price on a second
home. Rates offered are variable or fixed, the term
is usually between 7 years and 25 years and it will
generally be on a repayment basis. Mortgage offers
for an off plan property should be in place within
one month of signing the reservation contract, as
stated in the reservation contract terms and
conditions. Once you have paid your contribution from
your own funds the French bank will take over the
stage payments, having received authorisation from
yourself to do so.
b. UK Mortgages: When purchasing off plan
property in France with a UK mortgage the mortgage is
not registered in the reservation contract and the
purchase is classed as a cash purchase. We do,
however, strongly recommend that the UK mortgage is
in place or agreed before the reservation contract is
signed.
Off plan reservation contracts cannot be signed
subject to the sale of another property.
Mortgage registration fees
If you raise a French mortgage to finance your new
build purchase, fees will apply (Frais
d’Hypotheque) which are calculated on a percentage
of the purchased price. The French Notaire confirms these at the
time of signing the Deed of sale. They are due at the
same time as the French conveyancing costs. The bank
will also charge a one off administration fee of
approximately 1% of the borrowed amount.
Back to Buying
off plan guide
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