Financing Your Purchase in France

In France there are banks specialising in lending for the purchase and restoration of property in France. There are also several of the major 'High Street' banks now joining enthusiastically in this activity. The interest rates are currently very competitive with world markets and you can always phone us to have the most recent indications. In general the banks will lend up to 70% of the value of the purchase to a foreigner obviously depending on the income of the borrower.

The formalities are minimal and basically consist of a suitable proof of income in the home country, the valuation of the property and the health of the borrower. Frequently all the forms are in English and French to facilitate the process and we can supervise the process for you. They will also lend for the restoration of a property against bills from the different artisans and normally pay as the work advances. In order for the whole process to reach fruition it is a very good idea to begin negotiating for a loan when the initial agreement for the purchase (compromis or promesse de vente) has been signed.

A mortgage can take up to six weeks to arrange because of mail delays, medicals if necessary and the eleven day 'cooling off' period which by French law you have to observe from the day you receive the offer from the bank. This forbids you to accept the loan until the twelfth day following your receipt of the written offer - protection for the consumer!

Finally it can be interesting tax-wise in France to have a loan for part of the value of a purchase even if you do not need one to realise your operation. We will be happy to discuss this with you.

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