Includes
French residential property
Loans available for the majority of Nationalities for either House
Purchase or refinancing for other
purposes including Home Improvements. |
|
Type
of loan
|
Repayment
only |
|
minimum
|
£10,001 |
|
maximum
|
no
maximum, but must not exceed 80% of valuation or purchase price (whichever
is the lower). Up to 80% of legal fees may also be borrowed in some
areas. |
|
Proof
of income
|
required
in all cases (can be made up of earned income, pension, investment
or rental income. Please note however, that it is not always the case
that the lender will take all or part of these incomes into account
when determining the maximum loan available).
Non-status loans are currently not available. |
|
Term
|
5
to 20 years up to age 70 |
|
Currency
|
Euros |
|
Current
interest rate
|
from
3.95% variable in the first year /
5.75% fixed throughout the mortgage term. |
Example:
Repayment mortgage of £50,000 over a period
of 15 years at an interest rate of 3.95% in the first year and then
1.30% above Euribor thereafter = £370.50 capital & interest
per month for the first year and then approx. 4.90% thereafter = £398.50
capital & interest per month. Total approximate payment over the
term of £73,394 including capital, interest arrangement and
survey fees. |
| How
much can I borrow? |
Your
loan is based on your joint net "take home" pay and is calculated
on an affordability basis. All your existing liabilities including
any mortgage/rent payments, personal and bank loans, credit card payments
(if the balance is not cleared on a monthly basis) and any maintenance
payments together with your proposed French mortgage payments must
not exceed 32% of your net monthly income.
Example:
Net joint monthly
income £2,500 x 32% of that figure is £800 minus existing
monthly mortgage payment £300 - no other liabilities. This leaves
a balance of £500 for a proposed French Mortgage payment.
|
| Guidance
notes for purchasing a property in France |
Property
prices in France appear on face value to be lower than in the UK.
There are however good reasons why this is the case and we would suggest
that you consider the following points when planning where to buy
and how much to pay.
Firstly, France has about the same population as the UK, but it is
a far larger country. Consequently, there is less pressure on land,
hence lower prices, excluding Paris and it's suburbs, the popular
ski-resorts and certain areas along the Mediterranean and Southwest
coastline.
French tastes in terms of what to buy and where varies considerably.
The charm and excitement of owning an isolated farm is less likely
to be of the same interest to a Frenchman. This will obviously affect
the resale value in years to come should you wish to sell.
Thirdly and probably one of the most important points to consider
is value for money. When buying you should bear in mind not only the
initial purchase price but renovation costs and local taxes, transportation
costs to and from property and of course ease of access. Whilst a
run down cottage requiring major renovations, with no electrically
or water may be your ideal dream, the reality often makes the purchase
unwise if not unmanageable and will be partly based upon a number
of these points.
Selling property in France is usually a slower process than in the
UK. Please consider buying in France to be a long term commitment
especially if you are to recover initial expenses.
To avoid any problems with agents immobiliers or notaries, it is strongly
advised that you take the appropriate independent legal advice before
signing the "Promise de Vente". The bank will require a
copy of this document to be forwarded with the relevant application
form. However you are able to sign this contract with the clause "
subject to mortgage finance" as the contract, once signed is
legally binding.
A French bank account will be required and the relevant RIB (Relve
D'Identite Bancaire) will be required before the release of funds.
All loans are offered in Euros.
It is advisable to arrange your mortgage finance before agreeing to
purchase a property.
All mortgages have to have a suitable life assurance policy assigned
to them, some lenders offer a free life assurance on the first applicant.
Not all French lenders carry out valuations/surveys. You may wish
to have one carried out independently.
Properties can be purchased either individually, in joint names or
in the name of a civil real estate company - known as an SCI (Societe
Civile Immobiliere - under French civil law). For an SCI at least
two people are required.
For advice regarding whether to purchase under an SCI, independent
legal advice should always be sought.
Your home is at risk if you do not keep up repayments on a mortgage
or other loan secured on it. Be sure you can afford the repayments
before entering into any credit agreement.
The local currency equivalent of your liability under a foreign currency
mortgage may be increased by exchange rate movements.
All figures correct at time of issue.
This is not an offer of a mortgage.
|
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