Yorkshire Lad Posted February 26, 2008 Share Posted February 26, 2008 Hi,A real relief to find this forum. We've been hit by the credit crunch and our UK mortgage is going to increase from aroound £1300 to £1800 a month thanks to being with Northern Rock. We could remortgage but are taking this as fate giving us a kick up the backside to follow our dream to live in france.Not as dreamy as it might sound - we're in a half decent position (I think - I hope)Kids both under 3, I run a web design business (working from Yorkshire but most of my clients are in the US) so can work anywhere with internet connection. The business is a UK limited company and we bring in (net) about £3000 a month. It'll stay UK based and just pay into our French bank account - myself and missus are directors.Outgoings once the UK house is sold will be about £900 - most of which is a personal loan.So income is £3,000 outgoings about £900. We'll have around £50,000 equity from the house.I'm sorry to be a bit northern :-) but do these figures add up to being able to get a French mortgage?Credit is fine in the UK - are we better off getting a French mortgage (I have a feeling they won't lend because of our £900 outgoings) or trying to get a UK mortgage IF they'll lend for what will be our only residence in france?Thanks for any comments.Tony Link to comment Share on other sites More sharing options...
Russethouse Posted February 26, 2008 Share Posted February 26, 2008 This thread may help : http://www.completefrance.com/cs/forums/733649/ShowPost.aspxAs far as I can see ( I may be wrong, others probably know better) the repayments should not be more than 33% of your total earnings minus all other debts ( looks like your 900 would come out first) However there are other things you may like to consider - if you work in France, broadly you pay tax, social charges etc, in France. There will also be health care costs etc.....There are postings about having a UK Ltd company and living in France - you can use the search option at the top right of the page....Hope that helps - no doubt someone more knowledgable will answer soon. Link to comment Share on other sites More sharing options...
Scooby Posted February 27, 2008 Share Posted February 27, 2008 [quote user="Yorkshire Lad"]Outgoings once the UK house is sold will be about £900 - most of which is a personal loan.[/quote]Why not repay the personal loan from the proceeds of your house sale? You will be paying much higher interest rates for a personal loan than on a euro denominated mortgage. Link to comment Share on other sites More sharing options...
Yorkshire Lad Posted February 27, 2008 Author Share Posted February 27, 2008 [quote user="Scooby"][quote user="Yorkshire Lad"]Outgoings once the UK house is sold will be about £900 - most of which is a personal loan.[/quote]Why not repay the personal loan from the proceeds of your house sale? You will be paying much higher interest rates for a personal loan than on a euro denominated mortgage.[/quote] For an intelligent bloke I'm a little slow sometimes - that would of course solve the problem -= although would leave us with a smaller deposit. The other possibility is renting for a year which is probably a good idea anyway. Depends on how fast French house prices are rising.Thanks! Link to comment Share on other sites More sharing options...
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