In order to secure the rate that you have been quoted, it is necessary to send us all the required documents for the loan application. Upon receipt we can forward them to the bank that day, and reserve the rate for you. Rates can change twice per month so speed is essential.
Yes. There are several ways to present the information to the bank – your consultant will find the best option for you. Please see the required documents for self-employed borrowers and contact us with any queries.
Check the list of required documents to apply for a French mortgage
In general, the rates are 1-2% lower than comparable UK rates, and the interest on French loans is tax deductible. For investment purposes it is better that the exchange rate risk from sterling to Euro is on the monthly repayment, rather than the whole value of the property.
Most people will just ask their bank to transfer their money to an overseas bank, but probably aren’t aware that there is a way that they can achieve a better exchange rate, and could make significant savings.
We’ve partnered with World First to offer an international payments service that could save you up to 4% of the amount being transacted. There are various other benefits to using this service over your bank too – low to zero fees, exceptional customer service and faster payments.
Visit our international payments page to find out more.
With a fixed rate loan the repayment penalty will be no more that 3% of the amount you are paying off early. There are generally no repayment penalties for variable rate loans. Please check this on your mortgage offer.
Most banks will offer the opportunity for you to pay interest only on the sums drawn down by the developer during the construction. Some banks will offer the opportunity of deferring all interest payments on the drawn down sums, and the addition of these sums to the loan amount. In effect, interest is accrued on the sums used by the developer, but the borrower does not pay them. These sums are added to the final loan amount. During this period the borrower will still pay life insurance. This period can last up to 36 months. Full payments can be deferred until the borrower receives rental income from a buy-to-let or leaseback.
We can generally arrange a payment holiday for up to three years. During this time the interest on the loan is accrued but not paid. Life assurance payments will be required during this time.
Income tax liability of 25% is charged for French non-residents, who are members of the EU. This liability can be offset against:
- Purchase costs
- Loan Interest
- 80% of value of property
It should be possible to avoid paying any French income tax, over a period of 20 years, as a non-resident – depending on how the purchase is structured.
19% is the CGT taxation rate + social charges of an additional 17.2% = 36.2% in total. Since august 2012, this total tax is applicable to all nationals, whether resident or non-resident in France. Taper relief is given over the life of the property ownership: the CGT liability reduces by 6% a year, from years 6-22, so is effectively nil after 22 years of ownership. To be exempt 100% from the Social Charge would take a total of 30 years of ownership. But please confirm your tax situation with a qualified taxation advisor.