Key criteria ...
In general, the following basic criteria applies to most french mortgages / most client cases :-
- maximum french mortgage is generally in the ranges 80% to 85% for non resident clients (non resident meaning where clients are not taxed, working and based in France itself at time of application) for repayment (capital and interest) mortgages, and a maximum of 70% to 75% maximum for interest only type borrowing cases.
- maximum french mortgage duration (which is subject to upper age limits) is usually up to a maximum of 25 years and the minimum duration is usually in the range 5 to 7 years (this guidance is depending on the lender in question).
- property (if second hand) should be basically 'habitable' (capable of being lived in day to day) as it stands - renovation costs can be considered in individual cases, provided the property is mainly sound and 'habitable' at the outset.
- mortgages for new build property can be arranged, and usually set up to met the stage payments associated with such projects
- mortgages with no redemption penalties / early settlement penalties are fully available and are our specialism.
- in terms of lenders' affordability criteria (how much you can borrow etc), each lender has its own individual criteria, and within that, also the criteria with the bank can vary, depending on the client earnings levels and other factors - its best to contact us to discuss this aspect or please refer to FAQ No.1 for an broad outline of this topic (or listen to our podcast on the home page).
- refinancing / remortgages of existing french mortgages can be considered, on a case by case basis.
- the minimum mortgage we normally handle is € 100,000 euros. On a case by case basis we can sometimes reduce this to a minimum of € 80,000 euros, but this is depending on our current workload, at the time.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured upon it
The Sterling (or local currency) equivalent of a foreign currency mortgage will vary with exchange rate movements
All mortgages are subject to status and individual lenders' criteria.
All mortgages must be paid by direct debit from a banking account within the French banking system which must be arranged prior to any legal property completion.
Please note that any introductions to any other firms, advisers, solicitors, French notaires or other individuals outside French Mortgage Connection's control are always given without warranty on our part and any dealings you may subsequently have with third parties are strictly a matter between yourself and the firms or individuals in question.
IMPORTANT : We are obliged to mention that you should ensure that you have an appropriate "clause suspensive" (the full title = "clause de condition suspensive d'obtention de prêt") regarding any proposed / needed borrowing inserted into the compromis de vente (or other relevant type of initial French sales contract) you may subsequently enter into. You are advised to seek independent legal advice to ensure that the wording of any clause suspensive is appropriate and watertight. Under such clauses, if wishing to be protected by it, you are normally required to apply for your mortgage within certain timescales (usually 10 to 14 days), and prove you have a mortgage within 1 month of your signature(s) on the contract.
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