French Mortgage

[French Fancy]

Hi there, we are considering building our own property in France and wondered if anyone could recommend the best mortgage available on a fixed rate??

Any help would be appreciated.

Regards

Wendy.

[idun]

As the central european bank have just reduced interest rates, I don't know how it will affect mortgage loans, so if I were you I'd shop around.

Did you know that they only allow up to a third of income for all loans, including car loans, anything else loans and rent or mortgage.

[French Fancy]

Thanks for that. Yes I was aware of the third of the income.

[Théière]

They leave you the other 2/3rd for tax and a little food [:P]

[Geremy]

Very funny

I'm just getting started on my search & to see what I can afford - is there a spreadsheet or info pack available on Mortgages - costs, rates, LTV...all that fun stuff please

[LEO]

If you need a mortgage , stop dreaming about France!

[andyh4]

I doubt if you will find a fixed rate mortgage in France - most seem to be fixed against one or other of the International rates.

When looking consider that your mortgage will be in Euros - if your income is in pounds then you have a (high) currency exchange risk - it could work in your favour but it could equaly work against you.

[Quillan]

BNP offer fixed rates but you need to be resident ( complete a French tax return and have done so for X amount of years, I don't know how many though) and work i.e. have a job in France to get one. Like all loans in all countries these days they are difficult to get.

[NormanH]

I have had two French mortgages, but have always had to prove my income with my 'Avis d'Imposition' (a bit like a French P60)

If you haven't been declaring income here you won't have this, and it greatly reduces your options.

[stan]

2 years ago, I obtained a French mortgage for my present property here in France, whilst resident in the UK. I only had to prove my income with my P60 and pension payment slips. French Fancy, I have Pm`d you some details of this, but cannot guarantee that things have changed, as per comments on this post, in the last 2 years since.

[Sprogster]

It was be nice to have an update from French Fancy as to how they got on with their search for a French mortgage, as it is nearly 10 months since their post.

In response to Stan, the credit market is a lot tighter than it was two years ago and most French lenders these days only lend to French residents, as foreign second home owners are seen as higher risk. There are I think some lenders still prepared to lend to foreign second home owners like GE Capital, but you pay a higher interest rate and have to take out life insurance with them, which can be problematical if you have a health condition or are over a certain age.

[stan]

[quote user="Sprogster"]

It was be nice to have an update from French Fancy as to how they got on with their search for a French mortgage, as it is nearly 10 months since their post.

In response to Stan, the credit market is a lot tighter than it was two years ago and most French lenders these days only lend to French residents, as foreign second home owners are seen as higher risk. There are I think some lenders still prepared to lend to foreign second home owners like GE Capital, but you pay a higher interest rate and have to take out life insurance with them, which can be problematical if you have a health condition or are over a certain age.

[/quote]

Thanks Sprogster, I did not realise the original post was 10 months old. I replied to it as it was on the current list of topics, however, I cannot see the post I replied to..it has disappeared ! I thought the lenders would have tightened their criteria in view of recent financial calamities, but was not sure. You are correct though, it would have been nice to have an update from French Fancy.

[Debra]

[quote user="andyh4"]I doubt if you will find a fixed rate mortgage in France - most seem to be fixed against one or other of the International rates.[/quote]

Credit Agricole offered us one before we had enough tax returns for it to be based upon revenue declared in France.  We had to provide copies of pension statements and UK bank account statements to prove our income.  However, as ours was even longer ago than Stan's, it might have changed since. 

[quote user="Sprogster"]you pay a higher interest rate and have to take

out life insurance with them, which can be problematical if you have a

health condition or are over a certain age.[/quote]

It was a higher rate but only by a very small amount.  I thought it was now illegal to insist on life insurance being with the same bank that provided the mortgage though?