Credit file

[markn139]

We are moving to France and wanting to buy a property, We have plenty of equity in our house and its currently up for sale. My credit file in the UK is not good with a couple of CCJ's from a couple of yrs ago and an IVA thats just been finish and completed. I was wondering how I would go about getting a bank account in France and indeed applying for a mortgage, even if its only short term till my house sellsin england (its just on the market now) I would be in a position to pay off the mortgage/loan straight away. Would my credit file be accessable by the french banks as I have struggled to open a high street bank account with the IVA even though it got finalised and completed as per arrangement and more so would I be able to get a mortgage? the property we are looking at is for 85,000 euro

not sure if this thread has been through before as im new here and not quite sure where to look.

regards

Mark

[Clair]

You will not have any problems opening a basic bank account and obtain a bank card.

Be aware though, that generally speaking, French banking is very much more "paternalist" than in the UK.

There is no overdraft unless it is agreed in advance with you bank manager.

Most bank cards purchases are deducted from your account in full either immediately or at the end of the month.

A bounced cheque (chèque en bois) may result in the bank taking control of your chequebook and card.

Loans are strictly regulated against your income.

I cannot comment on mortgages, as I have no personal experience of them in France.

[NormanH]

My experience with Credit in France ( and I have had two mortgages and several loans/store cards etc) is that they want to see something they can understand and is familiar to them as evidence of income.

It was much easier for me once I could show copies of 3 years French  tax with the 'Revenu fiscale de référence' on them ( this is roughly stating what your taxeable income is, and can be used as proof of income.)

What they weren't very interested in is documents in English.

My bank is also the source of my major loans, but I had been with them for some years and they could also see regular payments going in.

They will also apply strictly a 30% rule.  Your payments out musn't be over 30% of your income for all credit.

[bigears]

hi

Give the state of the uk housing market, why don't you wait until you actually have the cash from your house sale.  Have you also been following the sterling/to euro exchange rate?

[AnOther]

Sound advice from bigears but, working on the assumption that you are fully up to speed on the overall state of play and aware of the risks but still determined to buy before you've sold, then you might like to know that in France it's possible to get a relatively cheap bridging loan which I think can be for a maximum of 2 years so this could be an avenue for you to explore. As Claire has pointed out though, strict lending rules will apply.

I'm afraid I can't give any more details because, like Clair, I have no personal experience of French mortgages.

[woody234]

what is an AVI

[Clair]

[quote user="woody234"]what is an AVI[/quote]

Do you mean IVA?

[breizh]

Individual Voluntary Arrangement. A form of personal insolvancy agreement with your creditors.

[Logan]

Your previous financial life in UK or anywhere else is of no interest to French banks. What will matter to them is your current income and the asset base you bring. In a sense you will be stating afresh.

However that said the system here is very unforgiving if you transgress outside the rules. Sanctions are severe. French people are very careful with money and so are the banks.

[Gardian]

[quote user="Logan"]Your previous financial life in UK or anywhere else is of no interest to French banks. [/quote]

This is absolutely correct (our son opened a local a/c recently & no background info required), except if you were to apply for an account with CA Britline. When we opened our account with them several years ago, they required a UK bank reference: I recall them saying that this was because they never see most of their customers, operating effectively as a phone bank.

This shouldn't be taken as a criticism of them, simply the way they work.

[markn139]

dont worry Logan I intend to keep on the right side, the IVA was with me financing an extension (I work on trust) up to a certain stage ie when the building inspector passes the slab inspection or maybe even up to roof. I then asked for money to cover me up to that stage and found out they didnt actually have the money to have the job done, but with me supplying then the onus fell on me to pay the materials, and it was more benificial for me to got into an IVA rather than bankruptcy. With regard to some of the other replies, ideally I would prefer to wait till the house is sold before buying, but I run the risk of missing out on an ideal property if that sells before my own house does.

thank you

Mark

[Panda]

The housing market is as dead in France if not more so that the UK so don't worry about losing the house here and even if you do there are loads more out there, why put yourself through unnecessary stress?

EDIT: It is also generally felt the market here is falling and so you might end up buying now and having a house worth less when your UK house finally sells.