Key points about this information item An Introduction to French Mortgages (part 3) - Midi-Pyrenees propertyInformation Description:
An Introduction to French Mortgages (part 3)
Many people purchasing property in France are surprised to learn that they could qualify for a French mortgage to help them finance their dream home.
French mortgages have been available to non-resident purchasers for a long time but it is only really in the last 10 years that the market has evolved and more and more French banks are willing to lend to foreigners buying a property in France.
How do you go about getting a French mortgage?
It is possible to apply for a French mortgage directly with a bank or via an estate agent but using a French Mortgage Broker will gives greater access to the French mortgage market and will help ensure that the mortgage application is put together by a mortgage professional and presented in the best possible way.
A French broker will also ensure that the mortgage applied for meets the borrowers needs and will be able to explain the ins and outs of the mortgage and how it works.
France does not operate a credit rating system like in the UK or Ireland and French banks cannot access foreign credit rating. Therefore, it is imperative for them to be able to build up a clear picture of the borrower’s financial profile in order to enable them to make a decision whether to lend or not. To achieve this, the lender requires a certain amount of document from the borrower, most commonly as follows:
- Personal identification documents such as passport, birth certificate & marriage certificate
- Last three years tax declarations
- Last three months wage slips
- Last 3 years accounts for self employed applicants or business owners
- Last 3 months bank statements
- Mortgage and Loan repayment schedules and/or statements
- Any relevant document showing the personal contribution (deposit)
- Statements for all loans and credit cards held
- French bank account details
- Proof of rental income for any buy to let properties already owned
- Compromis de Vente or reservation contract for the property being purchased
The French lender will then study the application and make a decision on the basis of the information supplied, or, they will request additional information if they feel that they are unable to reach a decision without it.
The time lapse from submitting an application to reaching a decision should generally be no longer than a few weeks (most of the time sooner) if the application is complete and correctly presented.
Article written by Sharon Hill, Mortgage Broker at French Mortgage Direct.
For more information on French mortgages please visit www.frenchmortgagedirect.com or call 0044 (0) 800 530 0673
Online plant sales, based in Escanecrabe, Midi-Pyrenees, France