Mortgages

The mortgage market in France is similar to the UK’s – it is mature and sophisticated, with a wide array of financing available, including fixed and variable rates, repayment and interest only options.
One of the benefits of a mature mortgage market is that you are able to find out if you can get mortgage pre-approval relatively easily. As mortgages in France are status based the options and products available to each buyer are dependent on individual status. However general guidelines of terms are as follows:

INTEREST-ONLY OR REPAYMENT
Interest rates from under 4%
Terms up to 20 years
Up to 85% loan-to-value
Some French mortgages work on a variable rate and variable term basis. So if interest rates fluctuate the term of your mortgage is extended or shortened in order to keep your monthly payments the same.
Investors buying off-plan in France are also protected by a raft of legislation, making it an extremely safe place to buy property.
Some mortgage lenders do charge a fee for mortgage setup. In addition you will need to setup a French bank account to both pay local utility and tax bills and make mortgage payments. Most lenders will help you open one directly with the lending bank.

OUR MORTGAGE PARTNER
We have an excellent relationship with the BNP Paribas, who are the leading mortgage specialists for foreign purchasers of second homes in France and have the unique advantage of being bi-lingual.
The BNP Paribas study and pre-approve all of our projects which saves a tremendous amount of time and paperwork when applying for a mortgage. Please note that the level of loan-to-value and interest rate available to you will depend on your financial circumstances as French mortgages are status-based.
If you would like to simply request a brochure, apply for a quote or a decision in principal within 48hours then please click here.
If you would like to contact an advisor directly then please contact Adeline Gonzales:-
BNP Paribas
Adeline Gonzales
Email:  adeline.gonzales@bnpparibas-pf.com
Tel: 00 33 (0) 320 18 20 27
Fax: 00 33 (0) 320 18 20 18

MORTGAGE SOLUTIONS
Below you will find a brief description of the mortgage solutions that are available. For further details and to find out about current interest rates and fees please use the link above to contact our mortgage partner who will be pleased to assist you.

VARIABLE RATE MORTGAGE
Variable rate mortgages have the particularity of starting out at a fixed rate and then becoming variable. The rate is fixed for the first three months. At the end of the first quarter, the rate is reviewed and revised quarterly thereafter. However, the monthly installments remain the same throughout the remaining term of the loan.

Minimum amount – 50 000€
Maximum amount – No Maximum
Duration – From 7 to 20 years
Loan-to-value – Up to 85%
Interest Only available – Yes

ADVANTAGES
Flexibility of a variable rate mortgage and security at the same time
You can borrow up to 85 % of the property value
No penalties in the case of early repayment
Possibility to switch to a fixed rate at any time
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Variable rate quarterly reviewed based on the Euribor 3 months. Total cost of the loan : 122 501.60 Euros, overall effective rate at 4.28% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1 552,09 Euros.
Subject to approval, some restrictions apply
Please contact our mortgage partner for a list of management service fees.

CAPPED RATE MORTGAGE
Suitable for clients who would like security competitive prices. The interest rate is capped during a certain period (7 or 10 years). If rates decrease, clients benefit from the full decrease and if rates increase, clients are protected by the cap (1%, 1.5% or 2%).

Minimum amounT – 50 000€
Maximum amount – No Maximum
DuratioN – From 8 to 25 years
Loan-to-value – Up to 85%
Interest Only available – No
Caps available +1%, +1.5%, +2%

ADVANTAGES
Triple security: Capped rate, capped duration, constant monthly payments
Choice from among 3 different caps
No penalties in the case of early repayment
You can borrow up to 85% of the property value
Possibility to switch to a fixed rate at any time
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Capped rate +1 over 7 years, quarterly reviewed based on the Euribor 3 months. Total cost of the loan : 168 855.20 Euros, overall effective rate at 5.68% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1745,23 Euros.
Subject to approval, some restrictions apply

FIXED RATE MORTGAGE
Our fixed rate mortgage is the classic financial solution for the following:
Purchase of a main or second home
Property to let
New or existing property including new building and renovation works on either your main or your second home
It may appeal to those seeking security and simplicity as the interest rate is fixed for the duration of the mortgage.

Minimum amount – 50 000€
Maximum amount – No Maximum
Duration – 7 to 25 years
Loan-to-value – Up to 85%
Interest Only available – No

ADVANTAGES
Maximum security
You can borrow up to 85% of the property value
Easy to understand
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Fixed rate, Total cost of the loan : 158 676.80 Euros, overall effective rate at 5.38% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1 702,82 Euros.
Subject to approval, some restrictions apply

SPECIAL FIXED RATE MORTGAGE
A flexible yet secure option for all types of acquisition, old and new, as well as equity release. It may be attractive to those who hesitate to take out anything other than a traditional fixed rate mortgage. The interest rate remains fixed during the first fixed period and then becomes variable. The monthly instalments remain constant.

Minimum amount- 50 000€
Maximum amount – No Maximum
Duration – From 7 to 20 years
Loan-to-value – Up to 85%
Interest Only available – No

ADVANTAGES
Combines the security of a fixed rate with the flexibility of a variable rate
Possibility to switch to a fixed rate at any time
You can borrow up to 85% of the property value
No penalties in the case of early repayment during the variable period
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Fixed rate during 5 years then quarterly reviewed based on the Euribor 3 months. Total cost of the loan : 137 079.20 Euros, overall effective rate at 4.73% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1 612,83 Euros.
Subject to approval, some restrictions apply.

INTEREST ONLY MORTGAGES
Interest Only mortgages may be attractive to those whose net worth is substantial and to clients who are sure of their ability to pay back the capital when required. No savings plan is required for additional collateral as we take a first charge on the French property. You will only be required to pay back the interest and the insurance throughout the duration of the loan. The capital is to be paid back in one lump sum at the end.

Minimum amount – 100 000€
Maximum amount – No Maximum
Duration – 7 years
Loan-to-value – 75%
Product – Variable rate

ADVANTAGES
No underlying savings vehicle as guarantee; you can keep intact your investments
Outgoings considerably reduced since you will only be paying the interest and the insurance each month
A deferred payment period is possible subject to conditions
You can convert the mortgage into a repayment mortgage with a classic fixed rate for the remaining term

BRIDGING LOAN
This loan is used to bridge the financial gap between the sale and the purchase of two properties in France only using a short and a long term mortgage.

Minimum amount – 50 000€
Maximum amount – No Maximum
Duration – 2 years
Loan-to-value – Up to 70%
Interest Only available – Yes

ADVANTAGES
Possibility to wait and sell at the best price
Term of the mortgage is up to 2 years
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 24 months. Fixed rate , Total cost of the loan : 27 196,73 Euros, overall effective rate at 5,008 % per year (life insurance included, without notary costs). Gives monthly repayments for 24 months of 58,33 Euros.
Subject to approval, some restrictions apply

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.