France has one of the most attractive mortgages available for foreign clients, giving them peace of mind for their long-term Real Estate Investment in France.
Clients tend to hold onto their French Properties for 20 years for their pensions with low-interest rates fixed for 20 years. The VAT of 20% that can be claimed back on new build properties can also help to finance a purchase of the property.
Before placing your deposit to secure your property it’s best to understand exactly how much you can borrow from the French Banks and to have a decision in principle. We can recommend a French Brokers who speaks fluent English and has a variety of different banks in France to choose from depending on your criteria so you can choose the right property.
One of the important factors is your debt ratio that the bank will take into consideration in your mortgage application. Your monthly repayments for loans etc cannot exceed one-third of your gross monthly income.
10 years repayment can cost 925 per month
15 years repayment can cost 650 per month
20 years repayment can cost 500 per month
25 years repayment can cost 450 per month
An interest-only mortgage can cost 200 per month
This is advisable for purchases above €1.2m to be more tax optimized, once the company is formed you must provide all the details of the company to your mortgage adviser and bank. We can also introduce you to the right Notary practice that specialises in company structures.
Mortgage Registration tax; this is normally charged at 1.5% for a new build property, and 0.75% for resales.
French Banks & Broker fees can charge up to 1% to arrange the mortgage
There are just 6 steps to take out a French Mortgage
What documents are Required to Apply for a French Mortgage?
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