French Euro Mortgages – Understanding the French Mortgage course of action

French Euro Mortgages – Understanding the French Mortgage course of action




You are now ready to take your French character dream a stage further and are planning viewing trips to find the right character.

Here are some meaningful considerations for understanding the French mortgage course of action:

Financing the buy of an off plan character

French edges offer a tailor made mortgage service aimed at individual private investors. They have complete knowledge of the off plan purchasing procedure and the stage payments schedule.

Mortgage quotations and guidance

English speaking advisors will guide you by the range of loans obtainable to provide you with total security and flexibility.

Signing a character reservation contract unprotected to raising a loan

French law offers complete protection to buyers who are raising a loan to finance the buy of their off plan character. A dedicated section in the reservation contract requires completion and signing, stating the amount borrowed and confirming the time extent within which the application must be processed and the offer signed. This section which proves the reservation of the French character unprotected to raising a mortgage is called a “Clause suspensive de pret” and allows the buyer to withdraw and to get his complete place back should the application fail.

French Euro mortgage interest rates

Interest rates in France are nevertheless below the UK base rate and are an attractive option. The maximum borrowing (LTV) French bank will offer is 80% and loan duration varies from 12 years to 30 years.

There will be some variation in the rates French edges currently offer. The following are provided only as a guideline: (*as at May 08, excluding insurance)

12 years

Fixed rate*

4.40% – 4.55%

Variable rate*

4.40% – 4.55%

15 years

Fixed rate*

4.50% – 4.65%

Variable rate*

4.45% – 4.60%

20 years

Fixed rate*

4.55% – 4.70%

Variable rate*

4.55% – 4.65%

25 years

Fixed rate*

4.70% – 4.85%

Variable rate*

4.65% – 4.85%

30 years

Fixed rate*

5.00% – 5.15%

Variable rate*

4.95% – 5.05%

Recommendations

Whether you raise a mortgage in the UK or in France, do make sure that you have an agreement in rule from the bank before traveling to France to view your chosen locations.

Mortgage applications can take several weeks and, as explained earlier, French character reservation contracts have strict deadlines with regard to mortgages. As a rule, the time limit to apply for a mortgage and receive an offer is four weeks from the date of signing the reservation contract. If the bank has all the required information in improvement it will be able to confirm whether or not a mortgage can be granted. This in turn will allow you to establish your maximum budget and confidently save a character when the right one is found knowing that finances can be raised.

Your mortgage offer can then be finalized and signed within the time limit provided in the contract.




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