In the UK & France interest rates for mortgages are very similar. For instance, in both countries the average interest rates is 3.70% for tracker mortgage rates. Therefore the cost of borrowing is quasi identical on both sides of the Channel.
• In France, the standard maximum loan to value is 80 to 85% for which first time buyers are also eligible whereas in UK the deposit required is approximately around 25% (75% LTV)
As in the UK we can also find 100% LTV mortgages reserved for clients with outstanding profiles.
• In France mortgage terms are usually longer than in the UK, up to 25 years. Consequently it is possible to stretch the debt over a longer period hence reducing monthly repayments. Furthermore, it is possible to fix the mortgage rates throughout the whole duration of the loan as opposed to the UK where the rate is usually fixed over a typical maximum period of 5 years.
• France & UK do not share their financial databases. This means that French banks will base their judgement on assessing thoroughly your supporting documentation. UK Credit check will not affect your chances of obtaining a French mortgage.
• If you already own a property in France, French banks can proceed with an equity release so it is possible use the cash for other purposes such as buying a property in the UK for instance.
It is important to note that UK banks cannot finance the purchase of French properties (and vice versa). Therefore the most convenient and straightforward solution is to go through a French bank if you buy a property in France.
If you are going home hunting in France in November or December, you just need to contact one of our mortgage advisers on this number:
+44 (0) 207 428 4918 or by filling this contact form on our website:
Before you travel to France to visit properties make sure you start your mortgage application with Sextant so we can provide you with our in house Agreement in Principle which will increase your negotiating power and will enable you to purchase your dream property at the best possible price.
Tags: French mortgage