French Mortgage Connection are pleased to confirm the following general lending criteria for French mortgage business, where the buyer is purchasing a "residential property" (with no major commercial element) for use as a holiday / second home or for their own main residence.
Please note that we do not arrange mortgages for properties with more than 1 Gite, or for completely commercial types of premises.
UK Nationals & other EU Nationals - living anywhere "outside" of France itself - up to 85% including estate agents' fees as a maximum
Non EU Nationals - up to 80% of the net price plus up to 80% of an estate agents' fees (excluding Notaries' fees) maximum.
For clients, of any nationality, already resident, working & taxed in France itself - and who are buying their main home, higher mortgage percentage loans may be possible (i.e. 95% or even up to 100% in some cases).
All ratios mentioned exclude Notaries fees, which must be financed by the client.
Currently in the Euro currency only, unless borrowing over 1m euros
Our minimum loan size is currently €80,000 euros.
Minimum of 5 years & Maximum of 25 years (but more commonly 20 years maximum with most lenders). For employed applicants, not normally beyond state retirement age unless there is adequate verified pension or investment income in retirement. Clients who are already retired may be able to secure a mortgage on the basis of pension income - terms assessed on an ad hoc basis, but cases below €80,000 euros are not normally considered. For Self employed clients - maximum term of 20 / 25 years - provided this is not beyond age 70, (unless there is verified private pension income available, post retirement).
Repayment ("Capital & Interest") Mortgages - up to 85% for Non Resident clients, or up to 95% for clients already working and taxed in France at the time of the application
"Interest Only" - up to 75% loan to value for cases of €100,000 euros or more on full interest only basis.
Certain conditions / requirements apply to full interest only type borrowing - full details upon request.
Mandatory - Life cover for the full amount of the loan (plus an allowance for exchange rate movements / term alteration on a non euro policy) is required as a condition of mortgage on the client(s)who's income the mortgage "depends" upon at outset. This is by Law in France.
For full details on how this is assessed, please refer to our FAQs section - FAQ No. 1. "How much can I borrow" ? For a free assessment of your borrowing capacity, please complete our Decision in Principle form.
France - mainland only
Varies according to the lender / scheme. Not payable until the mortgage offer is "accepted" by you OR "with the first mortgage payment" in most cases
Variable, Fixed and Capped rates available
Yes - straight debt refinance i.e.. "existing mortgage for new remortgage" or for Renovation works. Up to 80% of the property value (and up to 100% of the cost of the works) - subject to valuation / project appraisal.
Leaseback scheme / arrangements, involving the granting of long leases (often 9 /10 years plus) to a Developer (for the purposes of reclaiming French TVA etc) are normally acceptable to our panel lenders provided (1) the mortgage is not to exceed 80% of the "TTC price" (the price including the French TVA) and (2) the developer is "well known" and able to offer fulfillment guaranties (please see the FAQs section on leasebacks for more information). Such cases are accepted on an ad hoc basis, and we therefore suggest you contact us to discuss the feasibility before signing any contracts to purchase. Also you should ensure you have a clause suspensive detailing the mortgage needed in any reservation contract, unless you have recourse to full funds to complete. For cases where the development is not completed, stage payments can be arranged to suit the terms of reservation contracts, subject to acceptance by the lenders concerned.
Yes - up to 70% maximum. Minimum €80,000 euros, minimum property value €115,000 euros
Yes - with "Stage" payments as and when required. Full details available on request.