Frequently Asked Questions on investing in France

1. Why use a broker?
2. How much can I borrow?
3. How much will it cost?
4. How long will it take?
5. Can I have a buy-to-let mortgage?
6. Can I have a self certification mortgage?
7. What supporting documents are required with the mortgage application?

Why use a broker to arrange the mortgage for you?

As independent mortgage brokers, we have access to every UK mortgage lender and a wide range of overseas lenders, many of which have specialist schemes and special deals.

e can provide guidance on the legal and technical aspects of property purchases in France; review and discuss all of the financial options available to you to ensure that you are fully informed when making such a financial commitment.

How much can I borrow?

There are considerable differences between lending abroad and raising finance in the UK. Whilst the UK system applies income multiples (i.e. 3 x your gross income) the European view is based on your ability to repay the loan. Most European banks lend on the basis that your total monthly repayments (capital and interest) should not exceed 35% of your net monthly disposable income.

To give yourself some idea of the maximum you can borrow in France, multiply your monthly net income by 33%. Then deduct from this your total U.K monthly credit outgoings (loans, credit cards, mortgage/rent). The resulting figure will give you a good idea of your maximum monthly French mortgage payment.

Many clients find that they cannot match up to the strict French lending criteria. Due to our flexibility we are often able to help our clients with a combination of UK mortgage and French mortgage.

Generally, we can arrange a French mortgage up to a maximum of 85% of the lower of the value or purchase price of the property.

How much will it cost?

As a general guide, the cost associated with a purchase of a previously occupied property equates to approximately 10% of its value. The cost associated with New Build property will include TVA (French VAT) at 19.60% charged on the purchase price although this will normally be included in the purchase price quoted to you.

Our systems can calculate the cost more accurately by using information on the property value and mortgage required. Please feel free to contact us for further details.

How long will it take?

Each individual case is different. However as a general guide, the time from mortgage application to the funds arriving to you typically range from five to seven weeks.

Obtaining a mortgage quotation, subject to the lender's approval, that you know is affordable BEFORE looking at properties will save you time, money and frustration. This will help to eliminate costly delays, the potential for losing your property, your cash deposit and gazumping.

Can I have a buy-to-let mortgage?

Buy-to-let mortgages are not available as a specific product in the French market at the present time. However mortgages can be arranged that allow rental of the property and this income can be taken into account on a very limited basis when working out how much you can borrow.

Can I have a self-certification mortgage?

At the current time we do not know of any lender who will consider applications on this basis. All mortgages are full status and require detailed proof of income and outgoings.

What supporting documents are required with a French mortgage application?

As a basic guideline the following documents are needed in order to verify your income:

• A copy of your last P60
• Copies of your last 3 payslips
• A copy of your Inland Revenue Tax Calculation if you have one

If you are self-employed you will need:

• Copies of the last three years' annual accounts
• Copies of the last three years' Income Tax Calculations issued by the Inland Revenue
• Copies of the last three months bank statements

This is not an exhaustive list and additional documents may be required. For more detailed advice please contact us.