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French Property Mortgage Guide

If you are looking for a mortgage in France, here are three tips to reducing the amount you pay.

Tip 1: Pre-Arrange

Most people make the mistake of finding a property, then arranging a mortgage. However, you can pre-arrange a mortgage in advance (in other words, a "Mortgage in Principle"). The mortgage provider will look at your income and expenses and then provide you a statement of how much they will lend on this basis.

One advantage of this is that you know up-front exactly how much you can borrow.

Perhaps more important, it may allow you to reduce the price you pay for your new property in France. A standard part of each property purchase agreement (known in France as a 'Compromis de Vente') is a clause stating that if the buyer is unable to get a mortgage, they are not required to buy the property and will get their deposit back. This is often a big problem for sellers, who will often arrange a sale only to have it fall through some months later because the buyer could not get a mortgage. Then the seller has to start all over again with advertising and so on. If you have the advantage of already having a mortgage pre-approved, the risk to the seller of the deal falling through is greatly reduced, so this is a strong point to use when negotiating price.

Tip 2: Consider a British Bank

A number of British banks (e.g. Barclays, Abbey National) are well established in France and offer mortgages there. Dealing with them has several advantages over using a French bank:

  • English Language. Unless you are fluent in French (both spoken and written), dealing with an English bank is a lot easier and avoids a number of potential issues.

  • Understanding. The French mortgage, banking and property systems are different from the UK. The British banks which are established in France can tell you about the differences and explain them.

  • Convenience. If you need to have a British account (e.g. for cheques, pension payments, and so on), it may be convenient to have your mortgage with them as well. If you have your French bank account with a British bank, it is even more convenient.

  • Save money. Depending on your personal circumstances and depending on the current interest rates in each country, correctly choosing between a 'UK Sterling Mortgage' and a 'Euro Mortgage' could save you a substantial amount of money. A British bank with France branches gives you the option to discuss and compare both.

Tip 3: Be Prepared

As discussed above, pre-arranging a mortgage can save you a lot of money on the purchase price. Choosing the best mortgage provider can also save you money. However, if you wait until you've found the property of your dreams, it will likely be too late for the former and you will be under time pressure for the latter. So, very early in your property search, you should choose a mortgage provider and get pre-approval.

In terms of this, we have 3 proposals:

  • Barclays. Barclays bank is one of the two leading British banks providing mortgages in France. If you fill out there 1-page form, they will send you their Guide to Property in France and their Guide to Mortgages in France (we found both publications very useful). In addition, they will provide a mortgage application form. To receive this information, simply Click Here.

  • Abbey National. Abbey National was the other main British bank in France, but now trades under the UCB name. Like Barclays, they provide useful guides and provide mortgages. For an application form Click Here.

  • Mortgage Site. If you would like to look at other options, we propose the site Mortgage In France.