Brief information about French mortgagesMortgages for your French holiday home
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BASIC ADVICE ABOUT FRENCH MORTGAGESYou want to buy a French holiday home, or you want to move to France to start a new way of life? You need a mortgage? So, you've made the decision to buy a French property. You have found your ideal property and you have decided to buy the property using finance - ie a French mortgage. What now? Finding a Mortgage lender:There are now many mortgage lenders so the job of finding one is quite easy - just by searching "French Mortgages" on the internet and you will see plenty. But which one - well that will be down to your own personal choice. Read all the information on as many sites as you can and make a short-list. See if any of them publish 'Testimonials'. Do you know of anyone else that has bought a French property with a mortgage - ask them for their recommendations. (I have recommended one that I have used at the bottom of this page) Things to be aware of - if you are still lucky enough to have found a cheap property (under 60,000€) and you still need a mortgage - you find you have a problem! Many lenders will not lend under certain amounts - so this should be the first thing to check when looking through the various mortgage lending sites. Do you need additional money to renovate? If yes, also find out if the Mortgage lender can provide additional funds for renovation. Compare all the lending interest rates. What are the set up fees? How much can you borrow? This is a question that will have a variety of answers - really depending on the lender, and on your own financial circumstances - but the general rule of thumb is: Add up all your financial commitments - ie. loan repayments, rent, credit cards repayments, existing mortgage repayments, maintenance etc . This amount should not exceed 33% of your total income (this may be assessed on Gros or net depending on the lender. Your Mortgage lending amount will then be based on what is left - ie. it is based on what you can afford to make as monthly repayments. Most mortgage lending websites will offer you the opportunity to complete a form to assess your mortgage availability and to give you a "decision in Principle". You have to seriously consider your available finances before embarking on the Mortgage Road. As all mortgage lenders will re-iterate:
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