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French mortgages work very differently to the UK
and elsewhere - French banks work out affordability using
earnings multiples. They typically allow
one third of a borrower's income to be taken
up with existing mortgage and debt commitments
and the new French mortgage.
Different banks have different criteria - don't be
put off if you get turned down. Each French lender has
different criteria and each of them offers
different products. Speak to a good French mortgage
broker to avoid having to approach all of the
lenders.
Self-employed? - French lenders can only consider income
that is visible on your tax returns. If
efficient tax planning ensures you show very little
income that is taxable, be aware that this will impact your
borrowing ability.
Keep your financial affairs in good order - the use
of overdrafts and credit cards aren't as common
in France as in the UK and US. The French lenders
will want to see that you keep your finances in
good order, that you don't exceed your overdraft
limit and that you don't have any failed payments
on your accounts.
Make sure you find the right product - re-mortgaging is
expensive and uncommon in France so
it is important you pick the right French mortgage
product from the start.
Thinking of financing your dream French purchase using a French
mortgage? Here are ten top tips from International Private Finance, the
leading French mortgage broker for non-resident buyers in France
10 TOP TIPS
FRENCH MORTGAGES
Ensure you are not stretching yourself too far -
the French lenders will want to see that you are
not stretching yourself too far financially and that
you will have some rainy day savings left over after you
have completed your purchase.
Construction and renovation works need to be
carried out by French registered builders - if you
are thinking about carrying out the work yourself
then borrowing the money from a French lender
will not be an option.
Life insurance options - most French banks will
require you to take out life insurance with the
French mortgage. However, there are possibilities
that allow borrowers to obtain a life insurance exemption or take
out a UK policy instead.
Give yourself time - it typically takes around three
months from starting a French mortgage application to
the funds being available for completion
with the notaire.
Broker versus bank - a good French mortgage broker
will be able to ensure you have the most cost
effective French mortgage for your situation. In
many instances they will save you money when
compared with applying to a bank directly.
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10. Stay up-to-date with the latest French mortgage
rates and visit:
leggett@internationalprivatefinance.comVisit www.international-privatefinance.com">www.international-privatefinance.com.
For further information call the team:
+44 (0)207 484 4642
or email: leggett@internationalprivatefinance.com
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