Did You Buy Cash and Have Second Thoughts? Opt for a Post-Finance Mortgage!

Sometimes, you may realize a French property requires extra cash for redecoration, renovation, or simply for your something else you didn’t plan on spending in the UK. A post-finance French mortgage gives you the opportunity to release cash from your French property, even if you have already signed the sale contract. This mortgage enables you to have the lowest interest rates (interest rates are close to historic lows currently), whilst lenders tend to charge higher interest rates and margins for equity release mortgages.

Please find out the conditions for any post-finance French mortgages:

–           For a resale home: 0 to 12 months after signature of the sale contract

–           For a VEFA (off plan) or Leaseback property: 0 to 12 months after signature of the sale contract

You can also enjoy:

Fixed repayment (20 years)


Capped repayment +1 (7 years)

From 3.70 to 4.70%

Variable repayment

From 2.80 to 3.3%

Interest only (3 months)


Here are the main advantages of a post-finance mortgage:

1- Increase the Sterling value

With the sterling gaining value against the euro exchange rate, many buyers are looking to take advantage of low French mortgage rates and borrow in Euros. These buyers can simply pay off their French mortgage with their sterling savings as the exchange rate has moved back in their favor, therefore reducing the sterling cost of purchasing their second in France.

2- Put some cash aside

Generally, many people like the peace of mind and flexibility provided by putting cash savings aside. Purchasing your home in France, using even a small French mortgage, may give you this option which can be paid off when the outlook improves.

3- Reduce your tax liability

A second French home also contributes to the fact that the French wealth tax can be paid (over €1.3 million of net assets and it is planned to be reverted back to €800k in July 2012 with the new French government). Nevertheless, having a mortgage secured against your own property in France can alleviate your wealth tax liability because it is calculated on your French net assets.

For further information about our latest French mortgage rates, check out our French best Buy tables.

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This entry was posted on Monday, June 11th, 2012 at 10:00 am and is filed under Currency exchange, French mortgage, French taxes . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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