Leroy Posted July 30, 2005 Share Posted July 30, 2005 We purchased a house last year in France (by remortgaging our UK home) and we recently applied for (and were refused) a mortgage with Abbey National, France - however, on a recent visit to France we opened a bank account with a local bank. The manager was very welcoming and helpful asked us if we required any mortgage and/or loans. As we would really like to repay our UK loan with a loan secured on our French home (which is worth well in excess of the amount we would borrow), the question I would like to ask is: would our new bank be aware of our previous application and its refusal. What credit checks are carried out in France or in the UK to verify any application?Any info would be much appreciated.Leroy Link to comment Share on other sites More sharing options...
Clarkkent Posted July 30, 2005 Share Posted July 30, 2005 Where is your source of income? If it is in the UK then borrow money in the UK. If you borrow in France you will have to service the loan from UK sources with a variable, unpredictable exchange rate and with currency transfer costs. Should the euro move upwards against the pound this may add greatly to your expenses. If you borrow in sterling you can predict and control your expenditure.I cannot answer your questions about banking policies in France, others on this forum (like Teamed Up) can. Link to comment Share on other sites More sharing options...
makeiteasy Posted August 1, 2005 Share Posted August 1, 2005 Dear Leroy,each bank is an individual entity and each is the King of is kingdom!I mean that if you apply for a mortgage in a bank and wish to apply for a mortgage in another one, there are no link between them and if one refuse, the second one is not informed about the decision.But in your case, you want to apply for a remortgage of your french house to reimburse you mortgage in UK, and here could be the problem because very few banks in France allowed to remortgage houses, because it's unknown and unused in France.I might be able to help you if you need...Good luck!Célinewww.makeiteasyconsulting.com Link to comment Share on other sites More sharing options...
Leroy Posted August 6, 2005 Author Share Posted August 6, 2005 Celine Thanks for your reply. Do you know what checks are carried out to verify the information supplied to the bank when applying for a mortgage? Also, how long should I expect to wait for a decision. Kind regards Leroy Link to comment Share on other sites More sharing options...
makeiteasy Posted August 8, 2005 Share Posted August 8, 2005 Dear Leroy,your question is easy: if you give an information to a bank you have to give in the meantime the proof of it(ie regarding your income if ou pretend earning such amount you have to prove it with a P 60 or your profit and loss more a letter from your accountant).Moreover, your bank statement will be put under a microscope and your salary or your drawings have to appear on it too.And it's the same for expenditures!!Then the decision is really subject to each bank...If the decision could be managed by the office manager it could be fast(in France fast is arround 1 and 2 weeks:whistling but if the decision should be given by the head office it could take quite a while...:crazyestimate of a while:between 2 weeks and eternity) if none as me follow your file and urge them regularly!!!Regards.Céline MONIER www.makeiteasyconsulting.com Link to comment Share on other sites More sharing options...
Teamedup Posted August 8, 2005 Share Posted August 8, 2005 Would a french bank really allow you to mortgage a house you already own? None of the banks I have used would. I have always been told that a mortgage must be obtained when purchasing the property. Other than that one can apply for loans for jobs to be done on the property.Have the rules changed. Link to comment Share on other sites More sharing options...
makeiteasy Posted August 8, 2005 Share Posted August 8, 2005 Yes and no...In fact it's not banks(even less french one) which allow to remortgage houses but some building societies i'm working with...So teamedup, you're absolutely right and unfortunately rules haven't changed.Célinewww.makeiteasyconsulting.com Link to comment Share on other sites More sharing options...
Teamedup Posted August 8, 2005 Share Posted August 8, 2005 Interesting, so how do building societies interest rates compare with those of the banks, which I believe are still very good at the moment. Link to comment Share on other sites More sharing options...
makeiteasy Posted August 8, 2005 Share Posted August 8, 2005 Pretty good!!! Rate is subject to the amount borrowed and duration but available for information between 3,66% to 3,98% (available for the 8/8/05 , variable and without insurance and different fees...so contact me to get a quote for your case)Célinewww.makeiteasyconsulting.com Link to comment Share on other sites More sharing options...
Tarn Posted August 10, 2005 Share Posted August 10, 2005 I may have some news soon... we applied for a mortgage against a property we purchased two years ago. The English bank rep (french bank) said yes, after seeing all our financial details. We did tell him that we wanted to borrow against the equity in the house. He said they do them for renovations, and pay the builder. We said we would do the building, and just want the loan (which he said was very unusual, but he'd try for us... and we did want to carry out some renovations didn't we:cool. We are awaiting the formal offer which we were told should be here within the next week. I'll let you know what happens. Link to comment Share on other sites More sharing options...
makeiteasy Posted August 10, 2005 Share Posted August 10, 2005 Dear Tarn,in your case, you'll get just a "normal" mortgage as french bank are able to do.You should know that in France getting a mortgage for something that you intend to do is not a problem(purchase, works, etc...) but if you had paid your house cash and some years after you need to raise money against it, no french banks will be able to help you.Here is the little difference... Link to comment Share on other sites More sharing options...
Teamedup Posted August 10, 2005 Share Posted August 10, 2005 Beware Tarn, sometimes banks want the copy of the bills for such work. Our bank has done in the past and the last car loan we got via our insurance company most certainly asked for a copy of our bill for the car. Link to comment Share on other sites More sharing options...
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