It’s a familiar story. You’ve put your UK home on the market, keen to make a fresh start in France. You decide to go to France on a prospective viewing trip, and fall in love with a French property. It could be a beautiful renovated stone house set in acres of unspoilt countryside, a charming village house to renovate in Brittany, or an investment apartment on the Cote d’Azur. Whatever it is, you want it. But, of course, you need to sell your English property first in order to have the funds to purchase your new home.
There is a way around this conundrum. Bridging loans not being a possibility anymore for purchasing a property in France, you could in fact take out a French mortgage. Many people believe that opting for a French mortgage is more costly than arranging a mortgage in the UK, but the setting-up costs may be pretty similar, if not cheaper, as the costs here have gone up. All you need is a 15% deposit to be able to take advantage of this golden opportunity.
When deciding to set up a French mortgage, you will have to bear in mind various fees, including notaire’s fees for registering the deed of the mortgage and brokers fees. The latter can seem daunting in terms of arranging a mortgage in a different language. At Sextant Mortgages, our dedicated in-house mortgage team speak English and will arrange it all for you, including liaising with the banks (subject to status).
If you get an agreement for a French mortgage, then your dream home could easily be yours. With French interest rates at their lowest- 2.75% at the time of going to press- and a mortgage product that is free from redemption fees, you can sell your property whenever you wish without any ties. Indeed, you will be able to pay back the loan amount when you’ve sold your property and be mortgage-free. Or, you can choose to use the cash to buy yourself a car, or simply save it for a rainy day.
This could really be the way forward, as the UK property market is moving slowly, for you to not let your dream French property slip through your fingers…
To find out more and get a free quote, please get in touch with our French Mortgage team by telephone on 0207 428 4918 or by email: [email protected]