Problems getting a french mortgage

[ForesterGloucester]

We are currently trying to purchase a property in France but are having some problems getting a mortgage. The cost of the property is around 100,000euros and we have a deposit of 40,000euros. We are both employed in the UK and intend to use the house as a holiday home. My wife is in full time employment as a nurse, and although I am in full-time employment, I am employed on a fixed term contract which seems to be the stumbling block.

Has anyone encountered this problem before or know of where we could get help in resolving things so that we can buy our house in France?

[Teamedup]

French rules say that your debt repayments (including rent, cards, car loans etc mortgages) cannot excede a third of one's disposable salary.

If you cannot prove that you will have a fixed and continuous income to come up to that, then you will have problems. It will be convincing them that you will continue to have an income that will cover that third.

As you can imagine for many of us, sometimes getting a mortgage here is not easy, bearing in mind these rules.

[Rita]

Hi,

We have been using a guy called David McDonald regarding mortgages he has been absolutely brilliant he really knows his stuff. He is based in France and his contact numbers are:

Mobile: +33 (0)6 63 89 06 18 (Best method of contact)

Office Tel: +33 (0)4 93 00 01 13

Office Fax: +33 (0)4 93 00 01 14

e-mail address is:[email protected]

Just contact him and tell him Rita says Hi! By the way I have no affiliation with him other than he helped us with our Mortgage and I do not gain anything by recommending him, however I know what a mine field this can be.

Hope he can help, Good Luck.

Rita

[Clarkkent]

Since your income is in Britain and you will service the loan from Britain you should borrow the money in Britain. That way you will be able to remove the effects of variations in exchange rate and the high cost of money transfer in order to service your loan. French interest rates may appear to be low compared with British rates but the "saving" may be more than wiped out by transfer costs and exchange rate instability.

You may also find that a French mortgage is not as flexible as a British loan, particularly if you wish to redeem it early. You may also be able to negotiate more easily with a British lender.