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100% French Mortgage


the wee p

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Does anyone have any information on acquiring a 100% mortgage, are personal loans easily gotten?  We have savings but not the 20% required, we were hoping to use our savings to pay notaire fees etc and use a loan to make up the deposit needed if we cant get a 100% mortgage.  Any suggestions?

On the other hand is the deposit on a mortgage always 20%? 

We are about to open a french bank account, we would like to try and keep all our banking needs with the one supplier if possible hence trying to sort out mortgages at this stage.

A lot of threads vary about wether to get a french mortgage in euros or in gbp in uk, any thoughts?

 

 

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Any form of personal lending in France is predicated on one's net disposable income and any other financial obligations, since if an institution lends more than the borrower can afford to repay, then the lender can be unable to recover the excess lending in cases of default.

Unless you can therefore prove significant net income, it is not likely that you would be able to proceed in this manner, unless the value of your proposed gross borrowing is pretty small compared to net income and any other periodic costs of living.

Banks also, by the way, don't usually become involved in valuations of your intended purchase: they lend purely on your stability and ability to repay.

 

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  • 2 weeks later...
100% mortgages (and higher) are certainly possible here in France - there will be loads of parameters that will determine whether you / your property qualify.  Speak to a mortgage advisor and shop around.  Best of luck  Ian

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I don't know if there is a legal minimum deposit but we only paid 10% which I understood to be the norm.

Maybe it's a case of any amount so long as vendor and buyer agree ?

Because the lending criteria are (sensibly) stricter in France you may find it better/easier/more convenient to raise your mortgage in UK.

Regarding the currency, well € mortgages are definately cheaper however if your income is in another currency you do of course leave yourself exposed to the vagries of the exchange rates.

Would I be correct in guessing that you are American BTW, "gotten" is a dead give away [;-)]

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Just to expand somewhat on my previous post - 100% and indeed even higher (where the mortgage is for more than the current value of the property)  mortgages are possible here in France.  They are by no means the norm.  I have only heard of these being for your principal home (as opposed to holiday home or buy to let).  The lending may come in staged payments based on renovations you carry out, agreed in advance and confirmed by your lender.  And while jc and others are correct: that mortgages are primarily based on "ability to pay" - in these 100%+ examples the value and potential value of the property become a higher priority in the decision.

Larger new builders and developers can often be negotiated with to an incredible degree - and they can come up with a variety of deals, that effectively give you 100% (creative "cash back" type arrangements) mortgage.

Most buy to let mortgages have a 30% deposit - though lower deposit percentages are available, typically these will be at premium interest rates and/or have more restrictions.

You cannot raise a mortgage in the UK (or any other country) secured on French real estate (even if you bank/borrow with the same bank in both countries).  What you could do is take out a mortgage on a UK property and use that money to purchase a French property - but in the case of default it would be the UK property that would be at risk.

The mortagage market here is maturing all the time with new products available every month - so if you are reading this thread in 2009 - ignore it!

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Ok, we dont have any other properties or financial commitments, this will be our home, we can have a deposit of 10% maybe not the full 20% and want to borrow the rest to buy our house when we find it, it wont be a new build i know that for certain i have been looking but struggling on the net to even try and decide which mortgage suppliers to approach just for information as none really advertise that they supply 100% mortgages

Oh and were Scottish not American! :)

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First thing Tricia I think the brackets ( ) in your user name are making it impossible to quote you in replies.

Secondly, apologies for insinuating you were American. It's just that I've worked with a good number of Scottish people over many years and, not withstanding the Scottish interpretation of the English language (no offence intended [;-)]), I have yet to hear one of them utter that (non!) word "gotten" whereas for Americans its the "word" of choice.

Thirdly, and again my humble apologies if I've gotten (te he) this totally wrong, but reading between the lines if you are contemplating coming to France and working to support a mortgage and earn a living then please please do your homework very carefully and thoroughly because for expats meaningful and reasonably paid work can be extremely difficult, if not impossible, to come by.

Good luck [:D]

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Hi Tricia (Peggy)

100% mortgages certainly exist in France, even if they aren't advertised. You should let a reputable mortgage broker find the best French mortgage for your circumstances. There are English speaking brokers working in France and they're easy to find on the net.

Another suggestion for you to mull over (well, you did say Scottish!) - why not buy a more modestly priced property?

KR

Mel

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  • 2 weeks later...
I had a great time in Bezier, and I am considering buying a [url=http://www.rightmove.co.uk/overseas/search/france]French property[/url] there. Spain is really close if you want a day out there, the sea  is near and I should think the area will become more very popular in the future. The amount of money I need for a two bedroom property is about  £40.000, which is far from the london prices I hear about. Would a French mortgage lender consider me, if I earn about £20.000 per annum, for a 100% mortgage ?

Alex

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