Below we discuss the key considerations for French Mortgages:

• Sterling versus Euro Mortgages

• Mortgages from French banks versus mortgages from UK banks

• Process for getting a French mortgage

• Importance of getting Pre-approval for your mortgage

• The mortgage get-out clause which is part of the house purchase contract

• Life insurance requirement for French mortgages

If addition to these topics (covered below), we suggest that you also get your free French Mortgage Information Pack from Barclays Bank. To get the following information, simply Click Here and complete the form.

• Explanation of French property market, process for buying property in France, and buying property abroad

• Guide to mortgages in France, including  explanation of the process

• A mortgage application form

You may also be interested in our French Property Guide.

Until recent years, mortgages in France were provided almost entirely by French banks. Fortunately, you can now get a mortgage for your French property from a British bank. This has a number of advantages:

• English language. Being a British bank, they of course speak English. So you can ask questions in English, discuss any problems in English and so on. Unless you are fluent in French, this is a big advantage over the typical French bank.

• Understanding. The French mortgage, banking and housing markets are different from the British. The British banks which have become established in France can tell you about the differences and explain them to you.

• Local Presence. If you are moving from the UK to France, you should know that Barclays (for example) has local full-service bank branches in France, as well as the UK. So you can deal with the same bank in France as you deal with in the UK.

• Convenience. Many people who buy property in France find that it is convenient to keep a British bank account. This is useful if you have British income (e.g. investment or retirement) or want to be able to write cheques for the UK. In many cases, given that you may already have a British bank account and income, it is convenient and cost effective to have your mortgage with a British bank.

• Euro Mortgages. Historically, the Euro mortgage rate is substantially lower than the UK mortgage rate. Consequently, you should seriously consider taking out a Euro mortgage instead of a mortgage in £. Your British bank can provide you information on the current rates for each type of mortgage, as well as provide information on the advantages and disadvantages of each.

Want to learn more? Just Click Here and complete the form.

The process of getting a mortgage in France is pretty much the same regardless of which bank you go with:

• Application. The first step is to complete a mortgage application form. Your bank will also likely require you to have life assurance, so you may need to complete a life assurance application as well. The requirements for a mortgage in France are basically the same as in the UK; the main item being proof of income (e.g. salary payslips or other proof of income).

• Valuation. In some cases, the bank may require a valuation of the property prior to offering a mortgage. If the bank requires this, you will typically be charged a fee to cover the cost of the valuation. Consequently, when shopping around for a mortgage, check if the valuation is required and if so what the fee for it is. Note that this valuation is not a full structural survey, merely a valuation check performed by the bank to reassure themselves that the value of the property will cover the mortgage in the event of a default on the mortgage.

• Mortgage Offer. Once the bank agrees to give you a mortgage, they will send you a mortgage offer (known in French as 'offre préalable  de crédit'). Normally the offer is good for a minimum of 30 days (you have up to 30 days to accept it).

• Cooling-off. When you receive the written mortgage offer, you must wait a minimum of 10 days before accepting it. This is a legal requirement in France, which is intended to protect the buyer from being hurried or pressured into a mortgage. The idea being that one has a minimum of 10 days to reflect before committing.

• Acceptance. After the 10-day cooling-off period, you can accept the mortgage offer. If you decide to accept the offer, it should be after the cooling-off period but before the offer expires (offers are normally good for a minimum of 30 days).

After you have accepted the offer, the property purchase must be completed within a certain period of time (e.g. 4 months), or the offer is void. Consequently, you should check both the period for which the accepted offer is valid and ensure that the property purchase is to complete within this period.

Lending policies in France tend to be a bit different than the UK:

• French banks tend to require a large deposit than UK banks. Consequently, while one can get 100% mortgages in the UK, the maximum in France tends to be 80%. If you require more than 80%, you may need to shop around.

• Traditionally, French banks are a bit more conservative about the multiples of income they will lend.

• French interest rates are of course tied to the local Euro interest rate, which fortunately is often less than the UK interest rates.

• You need to carefully check what fees will be charged in addition to the interest and repayment elements of the mortgage. For example, you may be charged an arrangement fee, a property valuation fee, and a notaire mortgage registration fee. These fees may be higher or lower than equivalent fees in the UK, so should be carefully checked when comparing the offers of different banks.

Want to learn more? If you haven't already ordered your brochures, just Click Here and complete the form.

If you are looking to buy a house in France, but have not yet found a property, you may wish to apply for a mortgage. Although the bank will not (in most cases) provide a firm offer until they known which property is being mortgaged, they may provide 'Approval in Principle'. This means that they have looked at your income and other considerations and are willing to give you a mortgage, subject to the property to be mortgaged being sound.

There are several advantages to this approach. To begin with, you get most of the application sorted in advance, so once you have decided on a property it is quite quick to get final approval. More importantly, it puts you in a better negotiating position with the buyer and may allow you to get a slightly better price. This is due to the fact that given the choice between a buyer who still needs to get a mortgage approval and one that already has an approved mortgage, most buyers will prefer the latter (sometimes even if the offer price is a bit less). This is particularly true in France, due to an important part of the property purchase contract (see below).

Part of the standard property purchase contract (compromis de vente) is the condition that the purchase is conditional upon a mortgage being secured. In other words, when you sign the contract to purchase the property, if you are unable to secure a mortgage, you do not have to buy the property.

This is an extremely important condition. Without this condition, if you are unable to obtain a mortgage and consequently unable to buy the house, you lose your deposit. With this condition, if you are unable to obtain a mortgage, you are no longer bound by the contract (unless you still wish to proceed) and can therefore cancel the purchase and have your deposit returned.

On occasion, a buyer may propose a contract which has this clause removed. It would be inadvisable to sign such a contract unless one does not require a mortgage or unless one has already has a mortgage agreed.

One important item to be aware of is that if you cancel the property purchase on the basis that you haven't been able to secure a mortgage, you are legally required to have made reasonable efforts to obtain a mortgage. This includes making an application in a timely manner (e.g. within a month of signing the compromis de vente). If you fail to meet these conditions, the buyer is not required to refund your deposit.

Many banks will require you to have life insurance. The reason they give for this is that, in the event of your death, repayment of the mortgage is guaranteed by the life insurance. As the cost of this insurance can vary, it is worth checking your options to ensure that you get the best deal.

We hope you found the above overview of benefit. To receive more information and a mortgage application,  just Click Here and complete the form.