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French Mortgages
Information on buying a house in France
Information on buying a house in France


France is most popular foreign destination for British buyers

British people seeking second homes abroad favour France over Spain despite recent real estate tax increases across the Channel.
The ongoing Eurozone crisis is doing little to deter ambitious home buyers, with many, 23%,  still keen to pick up a property bargain abroad, according to the latest HiFX Property Hotspots Report.
‘France remains a safe bet for Brits. It goes without saying that the sun and lifestyle are a big pull but buyers can now get better value for their money and take advantage of the weakening euro,’ said Mark Bodega of HiFX.
Neighbouring Spain is in second place with two in ten potential buyers, 19%, hoping to purchase a property there. However, the allure of Spain falls down the rankings for experienced property owners, with just 9% saying they would buy there if they were considering purchasing another property.
‘Spain is still popular with Brits who are hoping to take advantage of lower property prices. The average property price in the country is down almost 13% in the last year alone.  In years gone by bargain hunters would focus inland, particularly looking for run down properties that needed some work. As inland prices have fallen the most since the property crash this is till true, however prices have fallen on the coast dramatically as well giving bargain hunters plenty of choice,’ explained Bodega.
The US is the next most popular destination with 7% and then Italy, Cyprus, Portugal and Switzerland all came in with 3%.
The report also shows that 35% of UK adults surveyed said they are looking to buy a property abroad within the next one to two years, whilst 30% are even looking to purchase abroad within the next six months.
Some 28% said that they will spend between £50,000 and £100,000 on their property, with 16% saying they plan to spend between £100,000 to £150,000.
They will largely be funding their property purchase through savings, with 43% stating this was how they planned to buy abroad, whilst almost a quarter said they plan to sell their UK home to buy abroad.
Lifestyle and culture are the most appealing aspects for 59% of UK adults when it comes to considering buying a place abroad, closely followed by the allure of foreign weather at 51%. Whilst having a better standard of living and the belief that it is cheaper to own a property abroad than in the UK are the key reasons for 24% of UK adults surveyed.
‘It's still a big dream for many Brits to either sell up and move abroad or own a second property overseas, and many understandably think now is a good time to pick up a bargain in the sun and make the most of the foreign weather and culture,’ said Bodega.
‘Our advice is always to make sure people research their options fully first, there are chances now to pick up some great deals but the current Eurozone problems still mean some countries can be quite unstable,’ he added.
Extract from Property Wire
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What’s the Euribor?

Euribor is short for ‘Euro Interbank Offered Rate’. The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds from one another. There are different maturities ranging from one week to one year. The rates provide the basis for the price and French Mortgage interest rates in the Euro zone. Most variable French Mortgages are pegged to the Euribor 3 months, however, in certain cases the French Mortgage provider can opt for the one-month or the one-year rate.

Look at the official Euribor page if you want to know more or ask the question here ;-)
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Which documents do I need for a French Mortagage?

Below is a list of documents the banks will require to proceed with your proposed French Mortgage file:

• Copy of passport(s)
• Copy of Utility Bill showing name and home address
• Copy of Marriage Certificate. (if applicable)
• Copy of Divorce Certificate. (if applicable)
• Copy of 3 month’s personal bank statements showing salary and any existing monthly loan payments.
• Last 2 Year’s Income tax returns or P60′s
• Last 3 month’s payslips
• If you are self-employed, balance sheet for the last 2 years attestation from your accountant confirming your income, and a copy of your latest 2 tax declarations
• For 2 people purchasing together (married couple/ partner/ business partner): the French Mortgage application must be made in both names and signed by both parties
• 2 x Insurance Questionnaires completed and signed
• Reservation Contract or Compromis de Vente including plans and signed by Purchaser and Seller
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