French Mortgages
How much can you borrow in France? To calculate how much you can borrow in Euros-
Take your gross (joint) monthly earnings £ Take 33% of this amount £ Deduct any monthly mortgage or rent you pay £ (You also need to add on all loan payments) £____________ This figure is the amount you can repay per £ month on a French Mortgage. To calculate how much this is in Euros simply multiply by 1.15% (or current exchange rate) Euro___________
Please also feel free to use our mortgage quote calculator.
You can then calculate the amount of capital you can borrow from the following current mortgage examples:
The amount per month required to borrow 100,000 Euros
100 000 borrowed at an interest only variable rate of 2.45% for 20 years = 204 Euros per month
100 000 borrowed at a variable rate of 2.45% for 30 years = 392 Euros per month
100 000 borrowed at a fixed rate of 4.95% for 20 years = 657 Euros per month
In France we can arrange loans at a variable rate (the rate goes up and down with market fluctuations), or we can arrange loans at a fixed rate with the rate of interest fixed for the whole of the term of the mortgage. The loan terms are between 7 and 30 years.
We can also arrange refinance in France - if you have already bought a property in France for cash, and now require a loan for renovations or improvements, or perhaps if you have already borrowed with a French bank, but at a very high rate of interest. Straight equity release is now possible for up to 70% of the valuation price.
Our fee for processing an application is 0.5% of the capital amount borrowed, with a minimum fee of £300 and a maximum of £500. This covers our costs and time in following through all the formalities in helping to set up the compromis with the right loan clauses, faxes and telephone calls to France, keeping your estate agent and notaire fully informed from the time of application to your completion and release of all funds and sorting out insurance for life and buildings etc. If you do not require all our usual services this fee can be reduced by mutual agreement.
Please telephone us on 01225 422282 and we will be happy to give you an individual quote. We can also PRE-QUALIFY you for a French loan before you go to France. There is no cost involved for this, you are not committed to any particular lender but it is of help in confirming you are a serious buyer with both the French agent and property seller.
Crabb & Templeton Associates Ltd Registered mortgage brokers UK consumer credit license No 409569. All information contained in this document was believed correct at the time of printing February 2010 and is for general guidance only. No responsibility will be accepted for any errors and omissions by the company, directors or employees.
