About Mortgages in France
Mortgages in France are available for most foreign buyers and are arranged on an affordability basis, where the financial institutes assess the ability to service the loan after deduction of any outstanding current credit commitments and the new mortgage. Typically this amount would be between 30 % and 40% of gross income but each case is judged on its own merits.
Arranging the mortgage will normally take between 8 and 12 weeks but some may be quicker or longer depending on the complex nature of the purchase, which you will be advised. There are also time frames which are set by French law, such as a compulsory cooling off notice period once the mortgage offer has been issued but again we are happy to guide you all the way.
Mortgage loans are available on an individual or a collective basis. If the purchase is being made by more than 2 people is could be advantageous to purchase the property via a Civil Real Estate Company known as a Société Civile Immobilière, or “SCI". Your Notary or a specialist solicitor will be able to assist and advise on this regarding the benefits and possible implications.
The majority of French lenders will require you to have life assurance when you take out a loan. Some lenders will insist on their in-house protection scheme, whilst others are happy for you to arrange your own or if you have them, assign existing protection policies.