Frequently Asked Questions
This section is dedicated to the most common questions we are asked by our clients about moving to France or arranging a Mortgage in France
75%-80% of valuation is standard.
Yes but only with dual UK and French borrowings. Any UK mortgage will need to be secured against an asset in the UK.
Yes
Yes - we will happily provide up to the minute rates upon request.
Yes, up to 75%
Yes, loans are available for construction purposes through specialist lenders. Terms and conditions are available on request.
You will need to allow for the French banks mortgage opening fee along with Notary and land registry fees. For existing / resale properties, notary fees are around 7- 8%. For new properties these are 4 - 5%. Land registry fees are typically around 1%. Bank fees vary form lender to lender and are available on request. All costs are quoted in writing before you proceed. All registry and notary costs will apply whichever bank in France is selected. You should allow around 10% of the property purchase price to cover all purchase and finance costs that will be due. You should not decide whether to take your finance for your property in France from France or the UK until you understand the relative set up costs in full.
Yes but all set up costs of the new French mortgage will apply along with any calculation penalties on your existing loan. To make changes, other than value, to your French mortgage necessitates the existing mortgage being closed down. Further taxes and Notary costs may be prohibitive.
Realistically 4-8 weeks depending on complexity of case.
Approximately a week to 10 days.
At present no this is not possible. All mortgage applications will require full documentation.
IMS will update you by phone, email or fax at key stages in the mortgage application process and will provide a courtesy update at least once a week.
If you are experiencing any difficulties with payments you should talk to your bank in France immediately. As in the UK, if you do not communicate with them the bank in France will start legal action.
For all initial guidance on level of French and total mortgage borrowing; written mortgage product quotes and general information there is no charge. If and only if you instruct us to submit a mortgage application on your behalf do we apply a fee. This fee is a flat rate of £ 650 for standard French residential mortgages. All French bank fees, tax and registry costs related to the French mortgage will be provided in writing.
In general most banks in France like to see the mortgage completed by the time the applicant is age 70, although IMS have banks that will actually lend to the age of 80. We can get terms up to 30 years. For clients falling outside this UK lending against an UK asset may be possible as an alternative financing option.
Yes but you must pay the first 20% of the purchase price yourself. For any amount above this level required pre-completion we can look to arrange finance. Alternatively you can look to arrange finance through UK equity release.
Yes IMS has lenders that will accommodate purchase made in an SCI structure
Most French banks expect the client to have a current bank account with them along with buildings insurance and life insurance to cover the cost of the property. All other products can be avoided unless you wish to take them. Attractive headline interest rates can have compulsory products tied to them and the full cost of all products should be considered when assessing the mortgage against the mortgage of another bank in France.
Currently the banks in France are under no obligation to register your debt in the UK. The mortgage in France will not show on your credit file in the UK.
You will be able to get finance on most types of property in France so long as they are classed as "in-habitable".
In general most banks in France assess your net not gross income and relate it to the actual monthly mortgage payments level. For most French lenders your monthly mortgage payments in France should not exceed 1/3rd of your proven income minus tax and existing UK liabilities. Each bank in France will have a slightly different view on how they underwrite and what papers they need to see. Some banks in France will provide mortgages in France with income ratios up to 45%. For French mortgage products providing higher income ratios you can expect to pay an extra margin above Euribor.
No French banks are not obligated to provide you with and operate under the regulation as laid out by the FSA. It is therefore extremely important you deal with an expert who can inform you in full of the drawbacks and benefits of financing in France.
Yes you will receive a formal offer form the bank. In some cases this offer will be subject to a "cooling-off" period whereby you must wait for a specified period of time before signing and returning the offer letter to the bank.
After completion, the Notary will officially register the deed of sale with the Conservation des hypothèques (land registry) and you will be sent a copy of your title deed around 6 months after the completion date.
Contact Us
If you have a query not answered on this page, please contact us via this website.
Buyer's Guide
In France, property purchase of is a regulated process. Read our guide for details of the various contracts you will come across.
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