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LEGGETT IMMOBILIER - LOCAL KNOWLEDGE YOU CAN TRUST 21
F
OR MANY PEOPLE,
purchasing a property
and arranging a mortgage
go hand-in-hand. One
is simply not possible
without the other. Yet there is a
clear difference between the two
processes: selecting your perfect
property brings excitement,
whereas the mere thought of arranging
a mortgage generally fills
people with a sense of dread.
This is quite normal, all the
more so if you need to arrange
that mortgage for a French property.
For, unfortunately, the first
thing to know about mortgaging
a home in France is that only a
French bank will be able to provide the financing.
UK lenders do
not have the legal right to take a
charge on French properties. This
complicates matters for British
buyers, who therefore have to
look into their financing options
with a foreign bank that works in
a foreign language.
The choice of a mortgage
merits your careful consideration.
After all, it will invariably be with
you for many years. Choosing the
wrong option may result in the
owner ultimately paying over the
odds for their property, even if
the original purchase price was
reasonable. This is particularly
relevant in France, as re-mortgaging is not a common
practice;
banks much prefer borrowers to
stick with one mortgage for the
duration of its term.
So, how can you make sure
that you choose the right mortgage?
The answer is relatively
straightforward: don't go it alone!
Even for those with a good
knowledge of French, tackling the
French mortgage market can be
a daunting experience. It is very
much in your interests to consult
an independent, English-speaking
French mortgage broker who will
be able to talk you through your
options.
The broker will be able to
match your personal profile with
the mortgage that suits you best,
without having to spend time taking your
case from bank to bank.
They can quickly furnish you with
up-to-date quotations of the
rates and terms within your reach,
putting you in the best position
to choose the mortgage that suits
your needs.
This does not necessarily
mean grabbing the lowest rate
you see. UK buyers are often
pleasantly surprised by fixed-rate
mortgages in France. By taking
a slightly higher rate than the
lowest on the market, buyers can
benefit from the security of a
mortgage that is not affected by
interest rate rises. Such a mortgage
product can be very appealing to those of
you who like to
plan ahead, safe in the knowledge
that your monthly repayments
will remain the same.
Others of you may take
an interest in wider economic
conditions. During the early part
of 2015, the Pound strengthened
against the Euro and boosted the
purchasing power of British buyers
in France. And there are signs
to suggest that the best is yet to
come for the British currency.
While Sterling consolidates
after the uncertainty of a general
election, the Euro is threatened
by plans for quantitative easing
and the possibility of Greece
leaving the Eurozone. Such events
may well see the Pound continue
LEGGETT MAGAZINE EXPERT ADVICE
Arranging a mortgage with a French bank can
be a daunting prospect. Here, Simon Smallwood offers
advice on how to overcome any concerns you may have
Choosing a
mortgage