When you’re looking to buy the house you want in France it is advisable to consider a mortgage in euros. is definitely something worth considering.
It’s best to begin your borrowing process earlier. Being aware that you have your finances organized will allow you to prepare your expenditures with confidence. You may also receive a better interest rate and be in a good position to bargain with sellers.
Mortgages in France
If you take out a loan from Consolidation now or a French institution, you’ll be able to take out loans up to one-third of your monthly gross income. If you do not have to have a “stable” monthly income, it is very difficult to obtain a loan. French banks and lending agencies prefer lending the salaried. They prefer employees who have worked for the same company for the last three years.
French mortgages provide fixed and variable rates that range starting at 1.50%-2.50 0.50 percent (2020). Also, they must make a deposit of 15 to 25 percent of the home’s purchase cost. The maximum amount for a repayable loan of 85% and the maximum of 25 years. Maximum 75% for an interest-only mortgage, and 15 years for the maximum time. Mortgages that are interest-only require that the borrower has assets, for example, a house within the UK. They can be more difficult to get.
You can also obtain a loan from a UK lender (pre-Brexit) However, many buyers discover that the process of borrowing money for a French property through a French bank is more convenient.
Contacting a French lender who specializes in providing mortgages to British ex-pats can save you lots of time and effort since they can provide you with the requirements and assist you to obtain the best deal.
Fixed or variable rate?
Although a fixed-rate mortgage may give the assurance of standard and regular payment, it’s usually more costly than a variable mortgage which fluctuates based on the rate of interest. It could be positive or negative in terms of the benefits it offers for the buyer. In France, the majority of mortgages are fixed rates.
Life Insurance
If you are taking the loan out of a French mortgage, you’ll require construction insurance and life insurance. Both could be provided by the lender. Life insurance ensures that you’ll be able to pay back the loan. In certain situations, you may be required to provide additional documents like an official medical examination certificate or blood analysis. Some policies require more details about where you regularly travel.
Use a currency specialist
The expert currency brokers can help make a huge difference in the long run, especially if you are you become a French homeowner. Transferring euros to sterling may incur fees, such as bank fees. However, a specialist in currency transfer like UPFX can manage your transfers with no additional cost while giving you the most competitive exchange rates. They can assist you with planning according to your particular requirements and budget, and offer valuable advice about the buying process for a house.