Mortgages in France for your property abroad in France
Getting a Mortgage in France
Firstly, you need an account with a French bank.
French banks are relatively cautious with regards to mortgages. Loans are not based on income, rather on outgoings. The buyer’s outgoings should not exceed a third of the monthly income. For example, if the borrower’s mortgage in his home country was 500 euros per month and the proposed French borrowing was 300 euros per month, this totals 800 euros per month, so the buyer’s income should be at least 2,400 euros per month for the bank to consider the loan.
People buying of plan might be interested in the following:
96% - 110% mortgages that cover the property price and furniture.
80% mortgages that cover the VAT inclusive property price, furniture and notary fees.
70% mortgages where you keep the VAT once it is reimbursed (variable or capped rates).
Interest only mortgages.
Fixed and variable rates are available in France.
Loans can be spread over 10, 15 or 20 years. The shorter the duration, the lower the rates of interest.
Documentation is required to process an application. Have the following prepared:
Photocopy of your passport(s)
Photocopy of birth & marriage certificate(s)
Six months' personal bank statements illustrating income & outgoings.
Employed Applicants:
Confirmation of employment i.e. contract or reference from your employer(s) stating income, your position and start date of employment
Three most recent pay slips and last 2 P60s
Self-Employed Applicants:
Last three years' audited accounts
A letter from a chartered accountant confirming the figures and personal drawings
Last two years' tax returns
Good luck getting your mortgage in France!