Find out what you need to know to get a mortgage for property in France.
Mortgages In France
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Updated: June 25, 2024There are many great reasons to buy a home in France, not least the food, wine, and weather. Properties there can be much cheaper than their equivalent in the UK and the cost of living is lower in most comparable areas.
If you’re ready for a new life in a glamorous French city or the bucolic countryside, here’s the essential information you’ll need to know about getting an overseas mortgage on a French property as a UK resident.
Yes! You don’t need to be a resident in France to get a mortgage there. French mortgage lenders will consider applications from buyers anywhere, including the UK.
British buyers are often pleasantly surprised to find out that the rates for French mortgages are consistently lower than for other countries. For example, data from the first half of 2022 shows that it’s common to find mortgages below 1.5%. Here’s some information on the different mortgage types that are available:
Fixed-rate mortgages in France work in much the same way as in the UK. You’ll lock in your mortgage rate at the start of the term and then your monthly repayment amounts will stay the same. The downside is that it can be difficult to overpay or repay early.
In the UK, variable-rate mortgages are usually linked to the Bank of England base rate and when that rate increases, your monthly repayments rise. In France, variable-rate mortgages are usually linked to the European InterBank Offered Rate (EURIBOR). Your monthly repayments won’t usually increase if it rises, but instead, your mortgage term will get longer.
A capped-rate mortgage offers a compromise between a fixed and variable rate. The rate can increase but won’t ever exceed an agreed figure. As a trade-off, you’ll be able to make penalty-free overpayments if you want to.
Interest-only mortgages are available in France but not usually to non-residents. You’re unlikely to get one unless you can demonstrate that you have the funds available to cover the total loan amount if necessary.
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In France, there are three sets of rules and lending criteria for three categories of buyers: French residents, EU residents, and non-EU residents. Fortunately, even after Brexit, UK residents follow the same rules as EU residents (which are more generous than for non-EU residents). Here’s a summary of those rules and criteria.
The maximum loan-to-value (LTV) for a UK or EU resident is 85%, though many lenders will only offer 75-80%. That means that the minimum deposit you’ll need is 15%, but 20-25% will give you more options.
Lenders can also make additional demands of foreign buyers to manage the elevated risk. You may be asked to:
Two main factors determine how much you can borrow:
To get an idea of how much you could borrow, based on these parameters, try our mortgage repayment calculator. Simply input some details about the mortgage you think you’ll need. Once the repayment is calculated you can check this versus your monthly income to see if it is below the required ratio.
This calculator can tell you the monthly and overall cost of your mortgage, based on the loan amount, interest rate, and term length.
The total amount paid at the end of your mortgage term would be
This is an interest only mortgageGet started with an expert broker to find out how much they could help you save on your mortgage repayments.
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Getting a mortgage in France can be straightforward with this step-by-step approach.
Step 1: Step 2: Step 3:Get an agreement in principle
Just like in the UK, you can get an agreement in principle from a French lender by providing some basic details about you and your income. This way, you’ll know roughly how much you can borrow before you start looking at properties.
Prepare your paperwork
The process for getting mortgage approval in France can be time-consuming, but you can ensure it runs as smoothly as possible by getting all your paperwork in order. You’ll need:
Speak to a broker who specialises in French mortgages
Mortgages can be confusing at the best of times. Buying a property abroad, in another legal jurisdiction and another language, adds to the potential for mistakes and errors, which can cause delays or even mortgage refusal. It’s best to work with a broker who understands the market and can guide you through it.
To speak to a broker we work with who fits this description, get in touch.
You can get a mortgage on a property in France either from a French lender or an international lender that operates in both the UK and France. French lenders include BNP Paribas, Société Générale, and Banque Populaire.
UK banks that operate in France include Barclays and HSBC (although HSBC only offers French mortgages to private banking or Premier customers). The advantage of working with a UK bank is that the forms, contracts, etc. will be in English.
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There are numerous differences between buy-to-let in the UK and France. French tenants have more rights (for example, the landlord cannot end a tenancy, no matter how much notice is given, if the tenant has paid their rent and kept to their contract) and French landlords must pay higher taxes and legal fees than their UK counterparts.
It is also harder to get a buy-to-let mortgage in France. Not all lenders offer them, and it can be difficult to satisfy your lender that the property will generate sufficient income. It is best to speak to a broker who specialises in buy-to-let investments and can advise you on the viability of your plans.
While France is one of the easier countries to get a mortgage in as a UK citizen, there are still nuances and intricacies to the legal homebuying system that can be difficult to navigate for the first time.
If you’d like expert guidance, as well as advice on which mortgage would suit you and help to find the best rate, it’s best to speak to a broker who specialises in French mortgages. If you’d like us to connect you with one, just call us on 0808 189 2301 or enquire online.
Potentially. The biggest barrier is that France has strict rules on mortgage affordability and your total financial liabilities cannot exceed 35% of your pre-tax income. If the second mortgage will not cause your liabilities to exceed 35%, you should be ok.
You can only get a 100% mortgage in France if you’re a tax resident there. UK tax residents can typically borrow up to around 80%.
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About the author
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
CeMAP Mortgage Advisor, MD
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
All of our content is written or verified by qualified advisors from the front line. Our guiding purpose is to ensure borrowers can make the best possible decisions by offering helpful and objective information and guidance on all things mortgages. Please send us a quick email at [email protected] if you spot anything you think needs checking or could be better.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The overall cost for comparison is 4.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.
Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.
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